Microsoft terminated its anchor-tenant agreement with Nscale for a data center project in Loughton, Essex, on October 18, 2026. The decision follows notification from UK Power Networks that the site would not receive sufficient grid power until the early to mid-2030s.
The planned facility was intended to be the largest sovereign AI data center in the UK, supporting Microsoft Azure workloads. Initial specifications included a 50 MW capacity with potential expansion to 90 MW, utilizing 23,040 Nvidia GB300 GPUs.
Nscale, which filed for a US IPO in September 2026 with a target valuation of up to $35 billion, continues to work with Microsoft on other projects in the US, Portugal, and Norway. However, the company's Norwegian site is currently operating at only 6.4 MW of its 30 MW planned capacity.
Despite the cancellation, Nscale intends to continue development in Essex by investigating on-site power generation, such as fuel cells. The UK grid currently faces significant connection backlogs, with some infrastructure projects experiencing delays of up to 13 years.
