Microsoft pulls out of Labour-hailed Essex AI data centre over fears grid power won't arrive until the 2030s

Nscale's Loughton site has shed its sole named customer a year after Keir Starmer's government trumpeted it as Britain's 'largest UK sovereign AI datacentre'. Microsoft, the anchor tenant, had signed up to lease 23,000 high-end AI chips there — an arrangement that formed part of the £22bn pledged during Donald Trump's state visit. Nscale says it remains committed and is looking at alternative power sources.

The planned site was still a working scaffolding yard as recently as March.

The setback puts at risk Nscale's hoped-for $35bn flotation on the New York Stock Exchange.

Board member Nick Clegg holds 917,000 shares and stands to lose a potential £30million windfall.