Microsoft pulled out of a deal with Nscale for a planned AI data centre in Loughton, Essex, in October after delays pushed the site’s expected connection to the electricity grid into the 2030s. Nscale said it remained committed to the project and was exploring alternative power sources.
Power delays hit the Loughton site
Nscale and Microsoft announced the Loughton agreement in September 2025. The site was set to host a supercomputer for AI workloads and support Microsoft’s Azure cloud services in Britain.
Microsoft told Reuters that its decision applied to the Loughton site and that it remained committed to its wider partnership with Nscale. Nscale said the power connection issue did not affect its other contracts with Microsoft.
What happens next
The setback shows how grid connection delays can disrupt plans for AI infrastructure. In Loughton, the next question is whether Nscale can secure another source of power for the facility.
Sources — Reuters and Nscale’s original project announcement.
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