Microsoft reportedly pulls out of UK data center deal with Nscale
MSFT•Microsoft reportedly terminated its agreement for a data center in Loughton, Essex, where a power supply may not be available until the 2030s. Nscale said it remains committed to the project and is exploring alternative power sources.
1. Deal reportedly terminated
Microsoft, one of Nscale’s two largest customers, recently terminated its agreement for the Loughton, Essex, data center, a report said. The reason was not specified.
2. Nscale remains committed
Nscale said its relationship with Microsoft remains strong and long-term, and that the grid issue does not affect its other contracts. The company said it remains committed to the Loughton project and the UK, and is exploring alternative power sources for the site.
3. Project and IPO context
The report said the project had faced repeated delays and that grid officials did not expect to supply power to the data center until the 2030s. Nscale filed for a US initial public offering last month; its prospectus identifies Microsoft and Anthropic as expected major customers. The company provides infrastructure and software for training and running AI models.
