Microsoft Withdraws From Nscale UK Data Centre Deal

Microsoft has withdrawn from a deal with Nscale for a planned data centre in Loughton, Essex, according to a Bloomberg report citing The Telegraph and published by The Business Times. The site has faced delays, and authorities reportedly do not expect it to receive a power supply until the 2030s.

Microsoft was due to become the anchor tenant at the facility. Nscale said it remains committed to the project and is considering alternative power sources and other UK sites.

The withdrawal comes as Nscale seeks to raise as much as $3 billion through an initial public offering, potentially as soon as October. Microsoft and Anthropic account for about 85 percent of its contracts, while Nscale's flagship Norway site is six months behind schedule, with 6.4 megawatts of its planned 30 megawatts operating.