free demoMicrosoft has terminated its involvement in what is set to be the UK's largest AI data center, although the tech firm behind the project insists it will still go ahead.

Nscale announced last year that it had pledged USD 2.67 billion to build and open a pioneering AI facility in Loughton, Essex. Microsoft, which had said it would fund a supercomputer at the site, has now withdrawn from the project. Microsoft declined to comment when approached.

Nscale Says it Remains Committed to the Site

Despite Microsoft's exit, Nscale says the Loughton development is still going forward. A spokesperson for the company said: "We remain committed to both the Loughton project and the UK, and we are exploring alternative power sources for the site, in addition to other expansion sites in the UK."

The spokesperson added: "Our relationship with Microsoft remains strong and long-term."

Indeed, the two companies continue to work together elsewhere. Nscale and Microsoft are still collaborating on projects in Norway, Portugal and the United States, and Nscale said its relationship with Microsoft remains strong for their other overseas ventures.

Power Supply Delayed into the 2030s

The data center had been due to receive its power supply at the end of this year. However, Nscale has been told that this will not happen until the 2030s.

Nscale attributed the delay to what it described as a "London-wide grid issue." The company said, "This unfortunate London-wide grid issue has no impact on our other contracts."

It is in response to this power supply problem, Nscale says it is exploring alternative power sources for the Loughton site.

The Scale of the Project

The Loughton facility, when it eventually opens, is expected to create 250 permanent jobs. Earlier plans for a USD 2.67 billion AI center in Essex had been linked to 750 jobs.

Nscale has described the facility as set to be the UK's largest AI data center, and the company pledged the USD 2.67 billion investment to build and open it last year.

Microsoft's Recent UK Investment Commitment

The withdrawal comes only a month after Microsoft announced that some of the USD 30 billion it is investing in the UK would be used to fund the Loughton supercomputer.

That announcement formed part of a wider wave of US tech investment in Britain. In related coverage, Nvidia's boss said the UK would be an "AI superpower" as technology firms committed billions of investment.

What Happens Next

Nscale has said it is exploring alternative power sources for the Loughton site, in addition to other expansion sites in the UK. The company maintains that the delay in grid connection has no impact on its other contracts.

Microsoft has declined to comment on its decision to pull out of the project. With the power supply now not expected until the 2030s, the timeline for the facility's opening, and the 250 permanent jobs it is expected to create, rests on Nscale securing an alternative source of power for the site.

Staying Ahead of the United Kingdom's Data Center Boom Starts With Better Intelligence

The United Kingdom's data center market is expanding at a remarkable pace, driven by cloud adoption, AI workloads, and stringent sustainability targets. But with hundreds of hyperscale and colocation projects competing for power capacity, land, and skilled contractors, the real question is: how will you know which opportunities are worth pursuing before your competitors do?

The Global Project Tracking (GPT) platform by Blackridge Research gives you a decisive edge, delivering verified, real-time intelligence on every stage of the data center project lifecycle across the United Kingdom and beyond.

From early-stage development to emerging digital corridors in the United Kingdom, you get the actionable insights needed to target the right stakeholders at exactly the right time.

• Upcoming Projects

• Tender Notices

• Contract Awards

• Projects Under Construction

• Completed Projects

Book a Free Demo today and see how the Global Project Tracking (GPT) platform by Blackridge Research can transform your data center market strategy across the United Kingdom.