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Microsoft exits Nscale data center agreement in UK, media report says
Nscale said it remains committed to the Loughton project and is examining alternative power sources after reported delays in securing grid supply.
Microsoft has withdrawn from an agreement with British cloud provider Nscale for a data center in Loughton, Essex, according to a media report. Microsoft is one of Nscale’s two biggest customers.
The report described repeated delays at the project and said national grid officials had advised Nscale that electricity supply was not expected before the 2030s. It gave no reason for Microsoft’s withdrawal. Microsoft did not immediately respond to requests for comment outside normal business hours.
An Nscale spokesperson said the company’s long-term relationship with Microsoft remained strong and that the London-wide grid problem did not affect its other contracts. Nscale said it remained committed to Loughton and the UK, and was considering alternative electricity sources for the site alongside other UK expansion locations.
Nscale has filed for a US initial public offering. Its prospectus identified Microsoft and Anthropic as expected major customers.
Backed by Nvidia, Nscale supplies computing capacity, electricity, data centers and software used to train and run artificial intelligence models. Its competitors include CoreWeave, Nebius, Crusoe and Lambda.