Power supply concerns drive Microsoft out of a huge Essex AI data centre that ministers hailed as Britain's biggest

British firm Nscale has lost the anchor tenant for its flagship AI development after Microsoft walked away from the deal. The tech giant's departure leaves a significant void at a project that ministers had championed as the biggest of its type in Britain. The blow falls on a company that had been positioned as a trailblazer in the UK data centre sector. The decision also raises questions about whether Britain can generate enough power to support its broader AI ambitions.

Nscale is a UK firm, and the Essex scheme was its showpiece project.

Microsoft had been lined up as the development's anchor tenant before it pulled out.