MICROSOFT JUST KILLED THE AI DATA CENTER DEAL — THE GRID CAN’T PLUG IT IN UNTIL THE 2030s

Microsoft has withdrawn from its agreement to use Nscale's planned AI datacentre at Loughton, Essex, over concerns about electricity supply to the site, informing the developer it was ending the deal. Microsoft had been expected to be the anchor tenant of the facility, which was announced in 2025, promoted by UK ministers as the country's largest AI datacentre and largest sovereign AI datacentre, and planned to open the following year supporting what Microsoft had described as the UK's largest supercomputer.

The problem is the grid: reporting in September 2026 said the site would not be able to get sufficient power until the early to mid-2030s, and the site was still an operational scaffolding yard in March 2026. The exit leaves Nscale without its only publicly announced customer for Loughton, though Microsoft remains involved in another Nscale project in Norway. Nscale said it remains committed to the site, is exploring alternative power sources, and that its relationship with Microsoft remains strong, with the London-wide grid issue not affecting its other contracts.