Microsoft withdraws from Nscale’s UK data centre project, jeopardising the startup’s IPO
+1 new source since this summary was written
Microsoft told British AI‑infrastructure provider Nscale that it would no longer be the anchor tenant for the planned data centre in Loughton, Essex. The cancellation was reported on 18 Oct 2026 and follows delays in power supply and construction at the site. Nscale, which relies on Microsoft and Anthropic for about 85 % of its contracts, had been preparing an IPO that could raise up to US$3 billion as early as October.
Why it matters
The loss of its sole announced customer removes a key revenue anchor, making it harder for Nscale to secure financing and potentially delaying or reducing the size of its IPO. Investors will watch Nscale’s ability to find alternative tenants and power solutions before the offering.
Key facts
- 1Microsoft withdrew from the agreement to be the anchor tenant at Nscale’s first UK data centre in Loughton, Essex. finance.yahoo.com
- 2Nscale’s IPO filing targets up to US$3 billion in proceeds, with a possible listing as early as October 2026. investing.com
- 3Microsoft and Anthropic together account for roughly 85 % of Nscale’s contracts, according to the IPO filing. investing.com
- 4Authorities have indicated that the Loughton site may not receive a grid connection until the 2030s. investing.com
- 5Nscale’s flagship data centre in Norway is about six months behind schedule, with only 6.4 MW of the planned 30 MW capacity operational. businesstimes.com.sg
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.