Microsoft exits Essex AI data centre project
Microsoft has withdrawn as the anchor tenant for a planned AI data centre in Essex due to electricity grid issues. The project, led by Nscale, faces a significant delay in receiving power, which may not be available until the 2030s.
What happened
- 2025
The UK government highlights the Loughton project as the nation's largest sovereign AI data centre [1].
- March 2026
Reports emerge that the planned site is currently an active scaffolding yard [1].
- September 2026
UK Power Networks informs Nscale that sufficient power will not be available until the early to mid-2030s [1].
- October 2026
Microsoft terminates its involvement in the project [1], [2].
What you need to know
Nscale still intends to move forward with the Loughton project and is seeking other power sources [2].
The facility was expected to create 250 permanent jobs upon completion [2].
Microsoft and Nscale continue to collaborate on other projects in the US, Portugal, and Norway [2].
Nscale is backed by Nvidia and had planned a New York stock market debut with a $35bn valuation [1].
It is unclear if Nscale can find a new anchor tenant or a faster way to secure electricity for the site.
Background
Nscale is a 'neocloud' provider with close ties to Nvidia. It was selected as a key part of the UK's sovereign AI strategy under Prime Minister Keir Starmer [1].
The Loughton facility was intended to house a supercomputer funded by Microsoft as part of a larger $30bn investment in the UK [2].
Questions people ask
Why did Microsoft leave the project?
The company pulled out because of concerns regarding the power supply for the site [1].
Is the data centre being cancelled entirely?
No, Nscale says it remains committed to the project and is looking for alternative power options [2].
Where this came from
Found through Google Trends and drafted with AI from at least two cited sources. Published automatically after passing our automated checks for sources, wording and safety. It may not have been reviewed by a person yet. Report a correction.