A major blow has struck the UK’s flagship AI datacentre project after Microsoft withdrew from the scheme, citing power supply concerns. The facility, developed by British firm Nscale and previously celebrated by government ministers as the country’s largest of its kind, was set to open in Essex next year. The setback raises questions about the future of the £1 billion-plus venture, which had been positioned as a cornerstone of the UK’s AI infrastructure. With the anchor tenant now absent, the project’s viability hangs in the balance.


Development by UK firm Nscale heralded by ministers as largest of its kind in country loses anchor tenantThe development of a huge AI datacentre hailed by the UK government has received a fresh setback after Microsoft pulled out of the project over concerns about power supplies.The development by the British company Nscale, heralded by ministers as the country’s largest AI datacentre when it was announced in 2025, was planned to open at Loughton in Essex next year. Continue reading...