Do you know? Nscale’s planned facility in Loughton, Essex, was intended to become the UK’s largest AI data centre and is expected to create 250 permanent jobs when it opens.
Microsoft ends involvement in Loughton project
Microsoft has ended its involvement in Nscale’s planned AI data centre in Loughton, Essex, according to the BBC. Microsoft had previously said it would fund a supercomputer at the site.
Nscale announced last year that it had pledged £2bn to build and operate the facility. The company said it remains committed to the project and to the UK, while exploring alternative power sources for the site.
“We remain committed to both the Loughton project and the UK and we are exploring alternative power sources for the site,” Nscale said.
Nscale also said its relationship with Microsoft remained strong and long-term for other projects overseas. The two companies are still working together on projects in Norway, Portugal and the United States, the BBC reported. Microsoft declined to comment.
Power supply delay adds uncertainty
The data centre was due to receive its power supply by the end of 2025. However, Nscale has been told that the connection will not happen until the 2030s, according to the BBC, which cited a report by the Telegraph.
Nscale said the London-wide grid issue had no impact on its other contracts. The company is also considering other expansion sites in the UK.
Project’s planned scale
- Location: Loughton, Essex
- Planned investment: £2bn, pledged by Nscale
- Expected employment: 250 permanent jobs when the site opens
- Microsoft’s former role: Funding a planned supercomputer at the site
- Current challenge: Delayed power availability and the search for alternative power sources
Microsoft said last month that part of its planned $30bn (£22bn) investment in the UK would fund the Loughton supercomputer. The source does not provide details on how Microsoft’s withdrawal affects that funding plan.
What happens next?
Nscale says it will continue with the Loughton project while investigating alternative power sources. The company also plans to pursue other UK expansion sites, although the source does not give opening dates or details of replacement funding arrangements.
Bottom line
Microsoft’s withdrawal removes its planned role in Nscale’s Loughton AI infrastructure project, but Nscale says the £2bn development will proceed. The project’s timing remains uncertain because of the reported delay to its power connection.
Source
This report is based on information published by BBC Business.
