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Microsoft Pulls Out of UK Data Center Deal with Nscale, Telegraph Reports
The move could hinder Nscale’s planned $3 billion initial public offering as the company faces delays and power-supply problems at the site, Reuters reported.
- On Sunday, Microsoft terminated its agreement for the Loughton, Essex, data center with British cloud provider Nscale. The US tech giant was set to become the anchor tenant at the facility.
- Authorities informed Nscale that power supply to the Loughton site is not expected until the 2030s, contributing to a series of delays at the facility. This infrastructure challenge undermined the project's viability.
- Nscale relies on Microsoft and Anthropic for around 85 per cent of its contracts, according to IPO filings, and is seeking to raise as much as $3 billion in an October offering. The withdrawal threatens both goals.
- "We remain committed to both the Loughton project and the UK," an Nscale spokesman said, adding the company is exploring alternative power sources. The spokesman noted the grid issue did not affect other Microsoft contracts.
- Investor caution surrounding AI computing suppliers has intensified as companies finance massive data-center capacity buildouts. Nscale's setback follows CoreWeave's recent 25 per cent stock drop and Firmus scrapping its own IPO plans.
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Microsoft pulls out of UK data center deal with Nscale, Telegraph ...
·London, United Kingdom
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BizTocMicrosoft axes AI deal in setback for UK data centre pioneer
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Microsoft Drops Out of Nscale's Flagship UK Data Center Project
Nscale's Loughton, Essex site loses its anchor tenant weeks before a planned $3 billion NYSE listing. Microsoft and Anthropic together hold roughly 85% of Nscale's $103 billion contract backlog, making the walkout a direct hit to its IPO pitch.
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welingelichtekringen.nl
welingelichtekringen.nlLOUGHTON (ANP) - Microsoft has withdrawn from a deal regarding a data center in the United Kingdom. This is reported by the British newspaper The Telegraph. Microsoft was set to become the main customer of a new data center in Loughton, UK, which is being built there by the British data center company...
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