Microsoft pulls out of Starmer's 'sovereign' AI data centre in Essex after grid power is delayed until the 2030s
Microsoft had been lined up as anchor tenant at Nscale's Loughton site, due to receive 23,000 high-end AI chips there, but has now withdrawn, leaving Nscale with no publicly named customers at the location. Ministers had hailed the project in 2025 as the 'largest UK sovereign AI datacentre'. As of March, the site was still operating as a scaffolding yard. Nscale remains committed to the development and is exploring alternative power sources.
As recently as last month, Microsoft had described the Loughton facility as part of its £22bn UK investment.
Microsoft's exit could cost Nick Clegg a £30 million payout.
The collapse of the deal throws serious doubt on Nscale's planned $35 billion Wall Street listing.
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Daily Mail NewsMicrosoft pulls out of AI deal for UK data centre firm in move that could deprive Nick Clegg of £30million payoutBBC News - TechMicrosoft pulls out of Nscale's Essex AI data centreThe GuardianMicrosoft drops huge AI datacentre project in Essex over power supply concernsThe TelegraphMicrosoft axes AI deal in setback for UK data centre pioneerReutersMicrosoft pulls out of UK data center deal with Nscale, Telegraph reportsBloomberg.comMicrosoft Scraps UK Data Center Deal With Nscale, Telegraph Says - Bloomberg.comBBN TimesMicrosoft Pulls Out of Nscale Data Center Deal: A Major Setback for Britain's AI Ambitions - BBN TimesUA.NEWSMicrosoft exits AI data centre project in Essex over power supply concerns — The Guardian - UA.NEWSMezha.netMicrosoft exits Nscale data center deal in Essex, Telegraph reports - Mezha.netThe Economic TimesMicrosoft pulls out of UK data center deal with Nscale: Telegraph - The Economic TimesInvesting.comMicrosoft pulls out of UK data centre deal with Nscale, Telegraph reports - Investing.comGuruFocusNscale Faces Setback as Microsoft Exits Data Center Deal - GuruFocus
