Microsoft pulls out of Nscale's planned Essex AI data centre

Microsoft has ended its involvement in Nscale's planned Loughton data centre in Essex, the BBC reported on October 18. Reuters also reported the withdrawal, citing the Telegraph. Microsoft declined to comment to the BBC.

Nscale says it remains committed to the site and is exploring alternative power sources. The BBC reports that grid power, originally due at the end of this year, is now expected in the 2030s. Nscale says that grid problem does not affect its other Microsoft contracts.

The reason for Microsoft's withdrawal has not been publicly established. The grid delay is relevant context, but the available reporting does not prove it was the sole cause. Nscale's statement about its other contracts is the company's account.

AI data centres need electricity where their computers run. A customer contract does not provide that power. Microsoft's reported withdrawal puts more pressure on the Loughton timetable.

Watch for Nscale to announce a new power plan and opening date. Microsoft may also explain how much of the project it has left.