Report: Microsoft pulls out of AI data centre in Essex – a project with power problems
Microsoft was set to rent about 23,000 Nvidia chips from Nscale in Loughton, England. According to the Telegraph, it has walked away – a blow for Nscale ahead of its planned stock market listing.
Archive image · Photo: Peter Trimming / Wikimedia Commons, CC BY-SA 2.0 (cropped and resized)
Microsoft has withdrawn from a planned data centre run by AI infrastructure provider Nscale in Loughton, Essex, according to the British newspaper The Telegraph. Microsoft was to be the anchor tenant, using some 23,000 Nvidia AI chips. The paper did not give a specific reason, but the project has faced delays and power supply problems – Nscale was reportedly told it might not get a grid connection until the 2030s.
Microsoft did not initially comment publicly. According to Investing.com, Nscale said it remains committed to the Loughton site and is exploring alternative power sources as well as further expansion in the UK. It said its relationship with Microsoft remains strong and that other contracts are not affected by the power issues.
The setback comes ahead of Nscale's planned New York listing, which could raise up to three billion dollars. According to its filing, Microsoft and Anthropic account for about 85 percent of its contracts. Nscale's flagship project in Norway is also reported to be about six months behind schedule, with 6.4 of a planned 30 megawatts in operation.