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Analysis

Microsoft leaves Nscale’s Essex data center without its anchor tenant

Microsoft has withdrawn from Nscale’s planned AI data center in Loughton, England, leaving the project without its only publicly announced customer. Electricity-supply delays threaten the planned opening. Nscale says it remains committed to the site, is examining alternative power sources and retains its other contracts with Microsoft.

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A cleared industrial yard with worn paving, a brick perimeter wall and an open steel gate beneath an overcast sky.

Loughton loses its announced customer

Microsoft has withdrawn from the agreement for the artificial-intelligence data center being developed by Nscale in Loughton, in England’s Essex county. The project has consequently lost the customer publicly named as its main tenant. Nscale supplies the computing capacity, electricity and data-center infrastructure used to train and run AI models. The facility had been scheduled to open in 2027.[1]

Electricity timetable stretches into the next decade

UK Power Networks, the electricity-distribution operator for London and southeast England, previously told Nscale that sufficient power would not be available until the early to mid-2030s. That leaves a gap between the proposed opening and the grid timetable. Nscale has cleared the site, which previously operated as a scaffolding yard. The company is investigating onsite electricity generation and ways of accelerating the connection process.[1]

Nscale retains the project and other contracts

An Nscale spokesperson said the company remained committed to Loughton and the UK, and was also examining other expansion sites in the country. Other Microsoft contracts are unaffected by the London grid issue, according to the spokesperson, who also stressed the strength and duration of the companies’ relationship. A different project in Norway still involves both Nscale and Microsoft. The withdrawal therefore concerns the Loughton agreement, while Nscale continues to explore power options for that site.[1]

References

  1. News sourceThe GuardianMicrosoft withdraws from Nscale’s Essex data-center deal↩1↩2↩3