Microsoft exits Nscale's Loughton data center as grid power slips to 2030s

Microsoft has withdrawn as anchor tenant from Nscale's data center project in Loughton, Essex, where grid power is now not expected until the 2030s, Data Center Dynamics reported on 19 October. The site had been targeting completion in late 2026.

Nscale announced the Loughton plans in January 2025 with an investment of around $3bn, 50MW of AI and high-performance computing capacity and a total power allocation of up to 90MW. Microsoft and Nscale disclosed in September 2025 that Microsoft planned to establish what it called "the UK's largest supercomputer" at the site as part of a $15bn investment in AI infrastructure in the UK. Microsoft would have been the anchor tenant at a data center Nscale develops, owns and operates.

A Nscale spokesperson told The Telegraph that the company remains "committed to both the Loughton project and the UK" and is "exploring alternative power sources for the site, in addition to other expansion sites in the UK," adding that "this unfortunate London-wide grid issue has no impact on our other contracts." The report does not state Microsoft's reason for withdrawing.

The delay moves the Loughton connection from a late-2026 target into the 2030s, a shift in which grid capacity and large-load rules now decide project viability before tenants do.

OpenAI exited its Stargate UK project with Nscale in April 2026, citing energy infrastructure issues, regulations and the cost of energy. Nscale's Glomfjord build in Norway was reported in October to be running six months behind schedule, with 6.4MW of a planned 30MW operational, according to Bloomberg reporting relayed by Data Center Dynamics.

Nscale reports about $103bn in contracted revenue, of which Microsoft is about 40 percent, or roughly $41bn. Data Center Dynamics notes that the Essex project is a small proportion of the contracted total, which bounds the direct revenue exposure from the anchor's departure. Nscale is preparing an IPO, and a September prospectus listed five active data centers totaling 55MW and 12 in various stages of development. Reports have suggested the company could seek a valuation of up to $35bn; the Business Times reported that a cohort of investors has since suggested Nscale scale the IPO down and target between $16bn and $19bn to make it more attractive to buyers.