Business
Microsoft pulls out of Nscale's £2bn Essex AI data centre project
October 19, 2026 at 12:26 AM
Microsoft has terminated its involvement in Nscale's planned Loughton, Essex data centre, the UK's largest sovereign AI facility, over power supply concerns.
- Microsoft has terminated its involvement in the Loughton data centre, where it was to be anchor tenant and fund a supercomputer, citing power supply concerns.
- Nscale pledged £2bn in 2025 to build the facility, which the Starmer government highlighted as the UK's largest sovereign AI data centre.
- A month earlier, power supply problems emerged, meaning the project would face a lengthy wait before coming online.
- Nscale said it remains committed to the Loughton project, is exploring alternative power sources, and that its relationship with Microsoft remains strong for other projects.