Technology · NEWS EXPLAINER
Microsoft exits Nscale’s Loughton AI data-centre deal as grid power slips into the 2030s
The reported exit removes the Essex project’s expected anchor tenant, but Nscale says it remains committed to the site and that its wider Microsoft relationship is intact.
Microsoft has withdrawn from its agreement for Nscale’s planned AI data centre in Loughton, Essex, Reuters and the Guardian reported on October 18. The central constraint is electricity: grid power for the site may not arrive until the early-to-mid 2030s.
What changed on October 18
Reuters reported that Microsoft had terminated its agreement for Nscale’s data-centre project in Loughton, Essex. The Guardian independently reported that Microsoft, which had been expected to serve as the anchor tenant, told Nscale it was withdrawing from the project.
Microsoft declined Reuters’ request for comment, so the company has not publicly set out its own reason. Nscale linked the setback to the London-area grid problem and said its relationship with Microsoft remains strong and long-term.
The electricity timetable is the decisive constraint
Reuters said grid officials did not expect power for the site until the 2030s. The Guardian reported a more specific early-to-mid-2030s window, far beyond the schedule described when the project was announced.
Nscale says it is exploring alternative power sources, trying to accelerate the connection and considering other UK expansion sites. Those are options under investigation, not a replacement power plan that has already been secured.
What the original project promised
Nscale’s September 2025 announcement described Loughton as a 50MW AI campus that could scale to 90MW. It said the site would initially house 23,040 NVIDIA GB300 GPUs, with delivery planned for the first quarter of 2027, and would support Microsoft Azure services in the UK.
That announcement is the baseline for measuring the change. A power connection pushed into the 2030s breaks the original relationship between the GPU-delivery timetable, the campus opening and the customer agreement.
What this does—and does not—mean
The reported withdrawal concerns the Loughton agreement. It should not be read as the end of every Microsoft–Nscale project. The Guardian said Microsoft remains involved in another Nscale project in Norway, while Nscale told Reuters the grid issue does not affect its other contracts.
Nscale also says it remains committed to Loughton. But without the expected anchor tenant and a firm power date, the site’s customer, commissioning and financing timetable is now materially less certain.
The next proof points to watch
The most useful next evidence would be a confirmed grid or on-site power agreement, a revised commissioning date, a replacement anchor customer, or a formal statement from Microsoft. Each would answer a different part of the current uncertainty.
Until then, the narrow verified conclusion is that Microsoft has reportedly exited the Loughton agreement, power availability has slipped into the 2030s, and Nscale says it is still pursuing the site and its wider partnership.
