Microsoft has withdrawn from its agreement to anchor Nscale's planned AI data centre in Loughton, Essex, in reporting first published on October 18 by The Telegraph and followed by Reuters, the BBC and CoinDesk. Microsoft was the site's only announced customer, set to lease its entire initial 50 megawatts and rent about 23,040 Nvidia chips there from early 2027.

The project, announced in September 2025 as the future home of the UK's largest AI supercomputer, stalled on power: grid officials have reportedly told Nscale that a sufficient connection may not be available until the early-to-mid 2030s. Microsoft declined to comment to Reuters. Nscale said its relationship with Microsoft remains strong, that it stays committed to Loughton and is exploring alternative power sources, and that its other Microsoft contracts are not affected.

The cancellation lands a month after Nscale confidentially filed for a US listing, reportedly seeking about $3 billion at a valuation near $35 billion. Its IPO filing says Microsoft and Anthropic together account for roughly 85% of its contract value, so losing the flagship UK anchor — even for grid reasons rather than demand — is the kind of setback investors will price.