Story perspectives

Microsoft Terminates Nscale’s Loughton Data Centre Deal

By Drooid · Oct 18, 2026, 6:03 PM UTC · How we work

Summary

Nscale Loses Microsoft

Nscale lost Microsoft as anchor tenant for its Loughton, Essex data centre after Microsoft terminated the deal.
Microsoft said grid power may not be available until the 2030s.
Nscale said its relationship with Microsoft remains strong and long-term despite the cancellation.
Nscale is seeking alternative power sources and other UK sites for the Loughton project.

Summary

Microsoft Faces AI Embarrassment

The Loughton data centre was highlighted during President Donald Trump's 2025 state visit as part of a £22 billion AI pledge.
Its collapse now creates political embarrassment for Microsoft and the British government that promoted the project.
UK officials used the deal to showcase national AI leadership and attract further foreign investment.

History

Historical Context

The AI boom, sparked by the 2017 transformer breakthrough and 2018 large-language models, has driven massive electricity use, leading firms such as Microsoft, Google and Amazon to fund new nuclear and gas capacity—U.S. gas production is expected to rise 10-20% by 2030. The 2024 collapse of Nscale’s Loughton data centre highlights how this surge can outpace grid capability.

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Nscale Loses Microsoft

Nscale lost Microsoft as anchor tenant for its Loughton, Essex data centre after Microsoft terminated the deal.
Microsoft said grid power may not be available until the 2030s.
Nscale said its relationship with Microsoft remains strong and long-term despite the cancellation.
Nscale is seeking alternative power sources and other UK sites for the Loughton project.

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