Microsoft pulls out of Nscale's Essex AI data center over grid power delays

Microsoft has ended its deal to be the anchor tenant at Nscale's planned AI data center in Loughton, Essex, where it had agreed to rent capacity on 23,000 Nvidia chips. Grid officials told Nscale the site may not get a power supply until the 2030s, well past its planned opening next year. The setback lands as Nscale pursues a US IPO that could value it at up to $35 billion; Microsoft accounts for more than 40% of its $103 billion in contracted revenue, though the UK deal is a small part of that. Nscale says it is exploring alternative power for the site and that its other Microsoft contracts are unaffected.