Microsoft Abandons Nscale's Loughton AI Data Centre Over Power Delays
Microsoft has cancelled its agreement to lease the entire 50MW capacity of Nscale’s planned Loughton data centre in Essex. The decision follows the discovery that the site will not connect to the UK power grid until after 2030, missing its 2026 target. This withdrawal removes Nscale’s only publicly announced anchor tenant for the project, threatening its plans for a $35bn IPO. While Nscale insists its relationship with Microsoft remains strong, the move highlights severe grid bottlenecks in the UK and raises concerns about the financial stability of AI infrastructure firms.