Microsoft withdraws from UK’s biggest AI data centre project

A tech firm says it will still go ahead with building the country's largest artificial‑intelligence data centre even though Microsoft has pulled out of the venture.

Last year, Nscale announced a £2 billion commitment to create a cutting‑edge facility in Loughton, Essex. The plan originally included Microsoft funding a supercomputer on the site, but the BBC reports the tech giant has now ended its participation.

Nscale said it is looking at other power options for the centre and stressed that its partnership with Microsoft remains solid for other overseas collaborations. A company spokesperson added, “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.” The spokesperson also said, “Our relationship with Microsoft remains strong and long‑term.” Microsoft declined to comment.

The data centre was supposed to receive its electricity supply by the end of the year, but a report in the Telegraph cited external sources saying the connection will not be ready until the 2030s because of a London‑wide grid issue. Nscale told the BBC that this problem does not affect its other contracts.

Despite the setback, Nscale and Microsoft continue to cooperate on projects in Norway, Portugal and the United States. The Loughton installation is projected to generate 250 permanent jobs once it opens.

Earlier this month, Microsoft announced that a portion of its £22 billion ($30 billion) investment in the United Kingdom would be allocated to fund the Loughton supercomputer.