Microsoft Exits UK Data Center Deal with Nscale

Microsoft has reportedly terminated its agreement with British cloud provider Nscale for a planned data center in Loughton, Essex, according to an October 18 report. The withdrawal is linked to repeated project delays.

Grid officials reportedly did not anticipate a power supply until the 2030s, though the report did not specify this as the sole reason for Microsoft's exit. Nscale, a UK-based cloud and AI infrastructure provider, stated that its relationship with Microsoft remains strong and long-term.

The company emphasized that the issues with the London-wide grid do not affect its other contracts and affirmed its commitment to the Loughton site while exploring alternative power sources. Microsoft declined to comment on the matter.

Nscale filed for a U.S. IPO last month, and its prospectus identified Microsoft and Anthropic as expected major customers. The company previously announced plans to invest £2 billion (US$2.66 billion) in the UK data center industry.