Microsoft has withdrawn from an agreement to lease capacity at a new AI data center in Loughton, U.K., being developed by startup Nscale Global Holdings. The site may not receive an adequate power supply until the 2030s.
The planned facility would have had a capacity of 50 megawatts. It was set to house thousands of Nvidia AI chips for Microsoft’s Azure cloud services.
The withdrawal is a setback for Nscale, which is preparing for an initial public offering, and for the U.K.’s ambitions to become a major player in artificial intelligence. Microsoft said the decision applies only to the Loughton site and that it remains committed to its broader partnership with Nscale on other projects.
Nscale said it remains committed to the Loughton project and is exploring alternative power sources.