Microsoft pulls out of Nscale's planned AI data centre in Essex
Microsoft has pulled out of a big AI data centre planned by the company Nscale in Loughton, England. The site will not get enough grid power until the 2030s. Nscale said it is still committed to the project and is looking at other power sources.
Microsoft has ended its role in Nscale's planned AI data centre in Loughton, Essex, which ministers had hailed as the UK's largest, the BBC and The Guardian reported. The Telegraph first reported the news.
Microsoft had been expected to be the anchor tenant, The Guardian reported. The BBC reported that Microsoft had said it would fund a supercomputer at the site. The BBC said it understands that Microsoft has ended its involvement. Microsoft declined to comment, the BBC reported.
The pullout follows news that the site will not get enough grid power until the 2030s, the BBC and The Guardian reported. The Guardian reported that UK Power Networks informed Nscale that it could not supply enough power until the early to mid-2030s. The BBC reported that the site had been due to get power at the end of this year.
"We remain committed to both the Loughton project and the UK, and we are exploring alternative power sources for the site, in addition to other expansion sites in the UK," an Nscale spokesperson said, according to the BBC and The Guardian. Nscale said its relationship with Microsoft "remains strong and long-term" and that the grid issue has no impact on its other contracts.
Nscale and Microsoft still work together on projects in Norway, the BBC and The Guardian reported. The BBC said they also work together in Portugal and the US.
Nscale pledged 2 billion pounds last year to build the site, which is expected to create 250 permanent jobs, the BBC reported. Only last month, Microsoft said some of its $30 billion UK investment would fund the Loughton supercomputer, the BBC reported.
The Guardian reported in March that the site was still a working scaffolding yard. Nscale has since cleared it and is looking at whether it can make power on site, The Guardian reported. The Guardian said losing its only publicly named customer for the site could hurt Nscale's hopes of listing on Wall Street at a possible value of $35 billion.
What we know: Microsoft has pulled out of the Loughton data centre after grid power was delayed to the 2030s.
What we don't: Whether Nscale can find another power source or tenant.
Where outlets agree The BBC and The Guardian both report that Microsoft has pulled out of the Loughton data centre after Nscale learned that grid power would not come until the 2030s, and both carry Nscale's statement that it remains committed.
Where they differ The cited reports agree on the key facts so far.