Microsoft exits Nscale’s planned Essex data centre deal

Microsoft has withdrawn from a planned deal to become the anchor tenant at Nscale’s data centre in Loughton, Essex, a setback for the British AI infrastructure company as it pursues a U.S. initial public offering. The reason for Microsoft’s decision has not been reported, and the company did not comment in the cited coverage. The planned facility is Nscale’s first British data centre. The site has faced delays linked to electricity supply, with authorities reportedly telling Nscale not to expect power for the facility until the 2030s. The available reporting does not establish whether those constraints prompted Microsoft’s withdrawal. Nscale said it remains committed to the Loughton project and the UK, and is exploring alternative power sources for the site as well as other UK expansion locations. A company spokesperson also described its relationship with Microsoft as strong and long-term, and said the grid issue would not affect its other contracts. The departure is significant for Nscale because its IPO filing, as reported, attributes about 85% of its contracts to Microsoft and Anthropic together. The reports do not specify the denominator behind that figure. Microsoft had...