TLDR
- Microsoft (MSFT) stock was down 1.93% in the latest quote after reports it left a UK data center deal.
- The Telegraph said Microsoft ended its agreement with Nscale for the Loughton, Essex site.
- Grid officials reportedly told Nscale power would not arrive until the 2030s.
- Nscale says its Microsoft relationship is strong and it is looking at other power sources.
- Nscale filed for a US IPO last month and names Microsoft and Anthropic as expected major customers.
Microsoft (MSFT) stock was down 1.93% in the latest quote shown with the BBC report. The move came after news that the company pulled out of a UK data center deal with Nscale.
The Telegraph broke the story on Sunday, and Reuters picked it up. It said Microsoft, one of Nscaleās two largest customers, recently ended its agreement for the Loughton, Essex site.
The Telegraph did not say why Microsoft withdrew. Microsoft declined to comment to both Reuters and the BBC.
Power Supply Pushed Back to the 2030s
The report pointed to a power problem. Nscale had faced repeated delays on the project.
National grid officials told the company they did not expect to supply power until the 2030s. The BBC said the site was due to get power at the end of this year.
Nscale called it an āunfortunate London-wide grid issue.ā It said the problem has no impact on its other contracts.
The company was quick to say its relationship with Microsoft āremains strong and long-term.ā It also said it is still committed to Loughton and the UK.
Nscale is exploring alternative power sources for the site. It is also looking at other expansion sites in the UK.
Where the Projects Stand
Nscale announced a Ā£2bn pledge for the Loughton facility last year. The project was billed as the UKās largest AI data center.
Microsoft had said it would fund a supercomputer at the site. Loughton is expected to create 250 permanent jobs when it opens.
Last month, Microsoft said part of its $30bn UK investment would go toward the Loughton supercomputer. The two companies still work together on projects in Norway, Portugal and the United States.
Nscale filed for a US initial public offering last month. Its prospectus names Microsoft and Anthropic as expected major customers.
The Nvidia-backed (NVDA) company competes with CoreWeave (CRWV), Nebius (NBIS), Crusoe and Lambda. It has grown from $100 million to more than $103 billion in total contracted value in two and a half years.
That is a steep climb for a company still waiting on its listing. Microsoft has not commented on the report, and Nscale says it is still exploring alternative power sources for Loughton.
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