Power delays prompt Microsoft to drop Nscale UK data centre lease
Microsoft has reportedly ended a plan to lease computing capacity at Nscale's proposed data centre in Loughton, Essex, after grid connection delays pushed power availability into the next decade. The site was intended to host an AI supercomputer using about 23,000 Nvidia GB300 chips, with Microsoft taking all 50MW of capacity. Nscale said its ties with Microsoft remain strong and that it is still committed to the Loughton project and the UK while seeking alternative power sources.
Microsoft’s reported exit from the Loughton, Essex, lease followed grid-connection delays. The site had been slated for a 50MW AI supercomputer with roughly 23,000 Nvidia GB300 chips, and Microsoft was to take all capacity. Power was once expected by late 2026, but may now arrive in the 2030s.
Nscale said its Microsoft ties remain strong and long-term, and that the London-wide grid problem does not affect other contracts; the companies still work on projects in Norway, Portugal and the US. Nscale added it remains committed to Loughton and the UK while seeking other power sources. The project formed part of a £2.5 billion investment commitment.
The delay could affect UK efforts to attract AI infrastructure, potentially slowing local job creation and investment around Loughton. It may also highlight how power constraints shape where AI computing is built, affecting technology firms, data-centre operators, and communities near grid-stressed areas. If projects shift abroad, the UK’s role in AI supply chains may be less certain, while energy planning and infrastructure investment could become more central to public debate.