Nscale announced last year that it would invest £2 billion to construct what would become the UK’s largest artificial intelligence data centre in Loughton, Essex. The company’s plans included a significant supercomputer component that Microsoft had committed to funding as part of the project.
According to reporting and statements to the BBC, Microsoft has now terminated its participation in the venture. A Nscale representative confirmed the change while emphasizing that the company intends to proceed with its broader commitment to the facility and the UK market. The spokesperson indicated that Nscale is investigating alternative power sources to support the data centre operations and is also considering additional expansion locations elsewhere in the country.
A power supply delay represents an additional complication for the project timeline. The facility was originally scheduled to receive its power connection at the end of the year, but grid infrastructure issues in the London area have pushed that target into the 2030s. Nscale characterized this as a London-wide electrical grid problem that does not affect its other contractual obligations.
Microsoft and Nscale maintain active collaborative relationships on separate projects in Norway, Portugal, and the United States. The company’s recent announcements regarding its UK investment strategy had included allocations toward the Loughton supercomputer initiative. When completed, the Essex data centre is projected to generate approximately 250 permanent employment positions. Microsoft declined to provide additional commentary on its decision to withdraw from the project.
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