Microsoft cancels AI-related partnership, dealing a major setback to UK-based data center pioneer Nscale

Microsoft has pulled out of a data centre deal in Essex, dealing a blow to British company Nscale's multibillion-dollar listing plans. The US tech giant, one of Nscale's two largest customers, recently notified Nscale that it would terminate the partnership agreement announced last year. It is a significant setback for Nscale: Microsoft had been the anchor tenant for its first UK data centre in Loughton, Essex. Despite the brutal sell-off in the AI computing sector, Microsoft's decision could still disrupt Nscale's push toward a Wall Street listing of up to $35bn. An Nscale spokesperson said: "We remain firmly committed to the Loughton project and the UK market, and are seeking alternative power for the site while planning other expansion locations across the UK. Our partnership with Microsoft is strong and long-term, and this London-wide grid issue will not affect our other contracts."