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Microsoft Pulls Out of UK Data Center Deal with Nscale

FT reports Microsoft terminated its anchor-tenant agreement for Nscale's £2B-plus AI data center amid grid and power delays.

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TLDR

FT reports Microsoft pulled out of its Nscale data center deal. The planned £2B-plus project in Loughton, Essex, faced grid and power delays that made its 2027 timeline unviable. Nscale is seeking alternatives while maintaining other Microsoft contracts. One commenter argues the setback highlights infrastructure limits rather than a wider drop in demand for AI compute.

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FT Financial Times@FT 6:47 AM · Oct 18, 2026
Microsoft pulls plug on Nscale data centre deal https://ft.trib.al/aO1aC6J