Microsoft Pulls Out of Loughton Data Centre Deal Over UK Power Delays

Microsoft has withdrawn from a deal to lease computing capacity at Nscale’s planned data centre in Loughton, northeast London, following reported delays in securing electricity for the site. The company said the decision affects only one location and does not change its wider partnership with Nscale. Reports say the facility may not receive a grid connection until the 2030s. Nscale, which is backed by Nvidia, said it remains committed to the Loughton project and is exploring alternative power sources as well as other UK expansion sites. The setback highlights how high energy costs and long grid-connection timelines are complicating major AI data-centre projects in Britain. The development comes as Nscale prepares for a possible New York Stock Exchange listing and continues to rely heavily on major customers including Microsoft and Anthropic.

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