6/104 sources · 4 publishersUpdated Oct 20, 16:39 UTC
Microsoft pulls out of Nscale UK AI data center deal over power delay
Microsoft withdrew from a planned AI data center in Loughton, Essex after the local grid operator said sufficient electricity would not be available until the early‑to‑mid 2030s. The site was to host 23,040 Nvidia chips and deliver 50 MW of capacity to Azure by early 2027. Nscale said the loss affects only this location and that its broader partnership with Microsoft continues.
Why it matters
Nscale’s upcoming U.S. IPO faces valuation pressure, with analysts noting a muted $30 billion estimate after the setback. The loss also removes a major Azure capacity source, forcing Microsoft to seek alternative sites for its AI workload.
Key facts
- 1Microsoft abandoned the planned AI data center in Loughton, Essex after the grid operator indicated power would not be available until the early‑to‑mid 2030s. coindesk.com
- 2The facility was intended to supply 50 megawatts of computing capacity using 23,040 Nvidia chips by early 2027. coindesk.com
- 3Microsoft and AI developer Anthropic account for about 85 % of Nscale’s reported future contract value of more than $103 billion. winbuzzer.com
- 4Microsoft’s commitments to Nscale total $43.8 billion through 2033. winbuzzer.com
- 5Analysts expect Nscale’s U.S. IPO valuation to be around $30 billion after the deal collapse. marketscreener.com
Summary written by AlphAI AI Desk from 4 of 4 sources. Not investment advice. Figures are as stated by the linked sources.