Microsoft leaves UK AI data centre deal amid power delays

Microsoft withdrew from its agreement to lease computing capacity at Nscale’s planned data centre in Loughton, northeast of London, while saying its wider partnership with Nscale remains intact. [13] Nscale attributed the setback to a London-wide grid issue; UK media reported that the site would not receive grid power until the 2030s. [13] Why it matters: The withdrawal shows how access to electricity can constrain AI infrastructure even after a major customer signs up: the site had been promoted by former Prime Minister Keir Starmer as the “largest UK sovereign AI data centre.” [13] Key insights: Microsoft described the withdrawal as specific to one site, and a person familiar with the matter said Loughton represented only a small portion of its agreements with Nscale. [13] | Nscale says it remains committed to Loughton and is exploring alternative power sources as well as other UK expansion sites. [13] | The constraint extends beyond this project: AFP reports that high electricity prices and long grid-connection waits have complicated some British data centre developments. [13] Cheatsheet facts: What happened: Microsoft withdrew from its capacity-leasing deal at Nscale’s planned Loughton AI data centre. [13] | Why: Nscale cited a grid issue; UK media reported that grid electricity would not be available until the 2030s. [13] | The catch: The withdrawal concerns one site, not Microsoft’s entire partnership with Nscale. [13] | What we don't know: The evidence does not establish when alternative power could be secured or when the site could begin operating. [13]