Microsoft has clarified that its withdrawal from Nscale’s planned AI data centre in Loughton, Essex, concerns a single site and does not mark the end of its wider partnership with the British AI infrastructure company.
In a statement reported on Monday, 19 October, a Microsoft spokesperson said: “This decision relates to a single site.” The company reaffirmed its commitment to working with Nscale on digital infrastructure and supporting global AI growth.
Recall, Aree Blog previously reported Microsoft’s withdrawal from the Loughton AI data centre project, following reports that delays to the site’s electricity connection could push the availability of grid power into the 2030s. The facility had been expected to begin operating in 2027.
Microsoft’s latest statement clarifies the scope of its decision but does not explicitly identify power-supply delays as the contractual reason for ending the agreement. The company has not disclosed the financial value of the cancelled deal or explained how the withdrawal will affect the project’s original commercial arrangements.
Nscale has maintained that it remains committed to the Loughton development and is investigating alternative power sources. The company has also said the issue does not affect its other contracts with Microsoft.
Reuters reported Microsoft’s withdrawal and its subsequent clarification.
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