Microsoft ends its deal at Nscale's planned Essex AI data center as grid power slips to the early to mid-2030s, reports say

On 18 October the Telegraph reported that Microsoft has terminated its agreement for Nscale's planned AI data center in Loughton, Essex. Reuters carried the report, and the BBC said it understands Microsoft has ended its involvement. Microsoft declined to comment to the BBC.

The Guardian reported that Microsoft pulled out over concerns about power supplies. It said UK Power Networks, which runs the grid across London and the south-east of England, told Nscale it could not supply enough power to the site until the early to mid-2030s. SiliconANGLE reported the site was planned to provide an initial 50 megawatts of AI capacity.

Nscale, a British company that builds and runs AI data centers, said it remains committed to the Loughton project and the UK and is exploring alternative power sources. It said the grid issue has no impact on its other contracts, and the BBC reported that Nscale and Microsoft still work together in Norway, Portugal and the United States.

We file this because a big tech tenant walking away from a planned AI site over late grid power is a real, named example of power holding back new AI computing. Why it matters to you: the AI build-out depends on electricity arriving on time, and here it did not.

How we read it: this is a power roadblock, not a sign that Microsoft wants less AI computing. Microsoft stays green on the map. Microsoft has not confirmed the termination itself.

What would change this: Microsoft confirming or denying the termination, Nscale finding onsite power or a new tenant, or similar grid delays hitting other planned AI sites.