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Microsoft cancels UK data center deal amid power delays
Updated 2 times since CLSTR started tracking revisions of this situation.
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2026-10-18 12:43 UTC → 2026-10-19 01:23 UTC ·
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The development of the United Kingdom’s largest planned AI supercomputer in Loughton, Essex, faces significant delays due to electricity supply constraints. Managed by the startup Nscale and backed by Nvidia, the project was originally intended to come online in 2027 to support Microsoft Azure cloud services using approximately 23,000 Nvidia AI chips. UK Power Networks has informed Nscale that the local grid cannot provide the required connection—potentially growing from 50 to 90 megawatts—until the early to mid-2030s due to severe congestion and the need for extensive work on the national transmission network. To mitigate these bottlenecks, Nscale is investigating on-site power generation options, such as solid-oxide fuel cells. Meanwhile, National Grid is reportedly working with the national system operator, NESO, to attempt to accelerate grid connections. In October 2026, Microsoft terminated its agreement to anchor the planned £2 billion data center, citing the electrical grid constraints. This withdrawal is a significant blow to Nscale, which is preparing for an initial public offering (IPO) on the New York Stock Exchange with a target valuation of $35 billion. According to IPO filings, Microsoft and Anthropic together account for approximately 85% of Nscale’s total compute contracts. While Microsoft accounted for approximately $43.8 billion of Nscale’s $103.4 billion contracted backlog, Nscale stated its relationship with Microsoft remains “strong and long-term” and that the company remains committed to the Loughton project. Nscale is also managing existing delays at its facility in Glomfjord, Norway, where only 6.4 MW of a planned 30 MW is currently live.
Versions
- 2026-10-19 01:23 UTC Microsoft cancels UK data center deal amid power delays
- 2026-10-18 12:43 UTC Microsoft cancels UK data center deal amid power delays
- 2026-09-29 09:39 UTC UK AI supercomputer project power grid delays
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