Microsoft has terminated its involvement in funding a supercomputer at Nscale's planned £2 billion AI data centre in Loughton, Essex, according to reporting confirmed by the BBC. Nscale announced the facility last year as the UK's largest AI data centre project.
The withdrawal stems from a power supply delay. The site was scheduled to receive electricity by the end of this year, but Nscale has been told the connection will not occur until the 2030s due to what Nscale called a "London-wide grid issue." Last month, Microsoft had stated it would allocate part of its £22 billion UK investment commitment to fund the Loughton supercomputer.
Nscale said it remains committed to the Loughton project and the broader UK market. A company spokesperson stated the firm is "exploring alternative power sources for the site, in addition to other expansion sites in the UK." Nscale added that its relationship with Microsoft "remains strong and long-term" and noted the power delay "has no impact on our other contracts."
Microsoft declined to comment on the termination. Nscale and Microsoft continue collaboration on projects in Norway, Portugal and the United States.
The Loughton facility was projected to generate 250 permanent jobs once operational. The data centre represents a significant commitment to UK AI infrastructure but now faces an extended timeline and revised funding arrangements as developers address grid capacity constraints in the London region.