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Microsoft pulls out of UK data center deal with Nscale, Telegraph reports
The withdrawal leaves Nscale with 85% of its contracts tied to Microsoft and Anthropic as it prepares for a potential US listing.
- 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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(Seoul=Yonhap News) Reporter Jeong Ju-ho = Enscale, a British artificial intelligence (AI) data center operator promoting listing on the New York Stock Exchange in the US, is Microsoft (MS)'s lead...
·Seoul, Korea (the Republic of)
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Reformatorisch Dagblad+2 Reposted by 2 other sources
Microsoft has withdrawn from a deal regarding a data center in the United Kingdom, reports the British newspaper The Telegraph.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 Nscale.
·Apeldoorn, Netherlands (Kingdom of the)
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Nscale's project for the construction of the UK's largest data center lost its only known customer, Microsoft. US technology dropped out of the project after problems with energy supply arose.
·Lisboa, Portugal
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Total News Sources48
Leaning Left1Leaning Right14Center11Last UpdatedBias Distribution54% Right
Bias Distribution
- 54% of the sources lean Right
54% Right
C 42%
R 54%
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