Microsoft exited Nscale’s Loughton, UK data-center project, where local authorities expect electricity supply only in the 2030s.

Microsoft withdrew from a specific proposed tenancy. Reporting attributed to The Telegraph said Microsoft had exited its collaboration with Nscale on the Loughton data center in Essex. Microsoft had been expected to become the principal tenant of Nscale’s first UK data center.

Power availability is a documented project constraint, but the termination reason was not disclosed. The report says local authorities told Nscale that electricity supply was not expected until the 2030s, and the project had experienced repeated delays. Microsoft did not explain its specific reason for ending the arrangement, so the reporting does not establish power timing as its stated reason.

The withdrawal occurred during Nscale’s IPO preparations. A subsequent message said Nscale acknowledged Microsoft’s exit on Sunday, while another report attributed approximately 85% contract dependence on Microsoft and Anthropic to Nscale’s offering documents. The supplied sources do not disclose the terminated agreement’s value, cancellation payments, or any replacement tenant.