Microsoft has cancelled its agreement to anchor a data center project in Loughton, Essex, developed by the AI cloud startup Nscale. The facility, which was intended to house 23,000 Nvidia AI chips and provide 90 MW of power, was originally scheduled to open in 2027.
The termination follows reports from UK Power Networks indicating that sufficient electricity for the site will not be available until the early to mid-2030s. Nscale, which currently lacks other announced customers for the Loughton location, stated it is seeking alternative power sources.
The loss of the anchor tenant occurs as Nscale prepares for a listing on the New York Stock Exchange. The company filed its S-1 registration statement on September 18, 2026, targeting a valuation of $35 billion and aiming to raise $3 billion.
Nscale reports a total contracted backlog of $103.4 billion, with Microsoft accounting for approximately $43.8 billion of that amount. Currently, the startup operates 55 MW of capacity in Europe, while its flagship facility in Glomfjord, Norway, faces delays and penalties with only 6.4 MW active out of 30 MW.
