Microsoft cancels its Nscale deal over a lack of power in Essex

Microsoft has cancelled its agreement to lease the Loughton data centre in Essex, UK, from the start-up Nscale, according to the Financial Times on 18 October. A person familiar with the matter says the site is unlikely to have power until after 2030, when it was expected this year. Microsoft would have leased its full 50 megawatts.

Nscale says it remains committed to the project, is looking at alternative power sources, and that the grid problem does not affect its other contracts. Microsoft had not replied.

The FT says Microsoft and Anthropic are Nscale's two biggest customers. Anthropic could walk away from a $45bn deal if Nscale misses financing or delivery deadlines on its West Virginia project. In August, Nscale had about 25,000 advanced chips online, against the nearly 500,000 it plans to operate.