The Guardian · AI
Microsoft exits Nscale’s Essex AI datacentre project over power concerns
Microsoft has withdrawn from Nscale’s planned AI datacentre in Loughton, Essex, because of concerns about power supplies, leaving the development without its anchor tenant. UK ministers described the project as the country’s largest AI datacentre when it was announced in 2025. The withdrawal marks a further setback for the development.

What to know
- 01
Microsoft withdrew over power-supply concerns, leaving the project without its anchor tenant.
- 02
The development is led by UK company Nscale and is planned for Loughton, Essex.
Why it matters
Microsoft’s withdrawal highlights the importance of power supply for this AI datacentre project promoted by the UK government.
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