Microsoft withdraws from Nscale's Essex AI data centre project

Microsoft has withdrawn from its partnership in Nscale's £2bn artificial intelligence data centre project in Loughton, UK, following expectations of delays in power supply until the 2030s. Meanwhile, Nscale remains determined to pursue the project by seeking alternative energy sources.

Despite Microsoft's withdrawal, Nscale remains committed to building the flagship £2bn artificial intelligence data centre project planned in Loughton, Essex. The company stated that it is seeking alternative energy sources for the facility in the region and examining other expansion sites across the UK.

The data centre was anticipated to begin receiving electricity by the end of the year, but it has become clear that this process will be delayed into the 2030s. While it was reported that this grid issue across London has not affected other contracts, it was noted that Nscale and Microsoft continue to work together on other projects in Norway, Portugal, and the United States.

For the Loughton site, which is expected to create 250 permanent jobs when opened, Microsoft announced last month that a portion of its investments in the UK would be used to fund the supercomputer there. Microsoft declined to comment on the matter.