Data centre (Representative image)
However, British infrastructure firm Nscale, which announced the 2-billion-pounds facility in Loughton, Essex in 2025, has said that it remains committed to completing the project and is finding other ways to power the data centre. Microsoft had previously intended to serve as the anchor tenant, with plans to fund and host a supercomputer at the site using part of its announced $30 billion (£22 billion) UK investment package. Despite Microsoft’s exit, which was first reported by The Telegraph and confirmed by the BBC, Nscale insisted it will complete the development and is actively looking for alternative ways to power the location. In response, Nscale said it has cleared the former scaffolding yard location, which had raised eyebrows earlier this year when The Guardian reported that industrial scaffolding operations were still active on-site, and is now exploring options to generate electricity directly on-site to bypass local grid logjams. The departure leaves Nscale without a publicly announced customer for the Essex development, putting unexpected pressure on the high-profile startup.
The project was by former Prime Minister Keir Starmer’s administration as the country’s pre-eminent “sovereign AI” hub. Our relationship with Microsoft remains strong and long-term,” an Nscale spokesperson said. The report also said that the multi-year connection delay proved insurmountable for Microsoft’s near-term supercomputing requirements.
Microsoft has reportedly terminated its agreement to participate in the flagship project to construct the United Kingdom’s largest artificial intelligence (AI) data centre, citing severe regional power constraints. “We remain committed to both the Loughton project and the UK and we are exploring alternative power sources for the site, in addition to other expansion sites in the UK.