Microsoft insists its £22bn UK pledge stands after it pulled out of Britain's biggest AI data centre over grid delays

Nscale's planned site in Loughton, Essex, is not expected to be connected to the grid until after 2030, which is why Microsoft walked away from leasing its computing power. Darren Hardman, Microsoft's UK and Ireland chief executive, called the project 'a small component' of the package. He insisted the plan 'will not change'. He also revealed positive talks on AI with Prime Minister Andy Burnham.

Microsoft pledged the money last year to expand British AI infrastructure from 2025 to 2028.

Hardman says Microsoft will still work with Nscale, but on sites outside the UK.

Microsoft's own research claims 43.7% of Britons used AI in the second quarter.