Microsoft reportedly withdraws from Nscale’s UK data center deal
Nscale is seeking up to $3 billion in an IPO while power constraints delay its planned facility in Loughton, Essex.
Microsoft has withdrawn from an agreement to serve as the anchor customer for Nscale’s first British data center, according to the Telegraph. The reported withdrawal comes as the AI cloud startup seeks to raise up to $3 billion through an initial public offering.
The planned facility in Loughton, Essex, has suffered repeated delays, Bloomberg reported, citing the Telegraph. Authorities have advised Nscale that electricity will not be available before the 2030s. The Telegraph gave no reason for Microsoft’s decision.
Nscale said it remained committed to Loughton and was exploring alternative electricity supplies and other British locations. A company spokesman told the Telegraph that its relationship with Microsoft remained strong and that the grid problem did not affect its other contracts. Microsoft declined to comment to the Telegraph and did not immediately answer Bloomberg.
About 85% of Nscale’s contracts come from Microsoft and Anthropic, its IPO filing shows. In August, Anthropic agreed to purchase $45 billion of computing capacity from Nscale over six years. Microsoft has separately signed a letter of intent for a campus in West Virginia.
Nscale also faces delays in Norway. Bloomberg reported that its flagship facility there is six months late, with 6.4 megawatts operating out of a planned 30-megawatt data center.
