Microsoft reportedly exits planned Essex AI datacenter project amid power delays

An agreement ends for Nscale’s Loughton project

The Register reported that Microsoft ended an agreement with British AI infrastructure startup Nscale for a planned datacenter in Loughton, Essex. The site had been pitched as the UK's largest sovereign AI datacenter, but reports indicated that sufficient grid electricity might not be available until the early to mid-2030s. Nscale said the project would continue.

The Loughton project had been presented as a planned 50MW AI datacenter, expandable to 90MW, with Microsoft expected to be its anchor customer and operations anticipated in 2027. The available report does not establish whether Microsoft had previously publicly confirmed that role.

Microsoft has reportedly terminated its agreement with Nscale for the Loughton project. Nscale says it remains committed to the project and is exploring alternative power sources and other UK expansion sites.

The project continues with power still unresolved

The reported departure removes the planned anchor customer from a major proposed UK AI-computing site while its electricity connection remains unresolved. It highlights that the project’s planned computing capacity and its expected power supply were on different timelines.