Microsoft has withdrawn from a deal to serve as the anchor tenant for Nscale’s first data centre in the United Kingdom, the Telegraph reported, as the artificial intelligence cloud startup prepares for a potential public listing.
The proposed facility in Loughton, Essex, has experienced several delays, according to Bloomberg, which cited the Telegraph. The newspaper did not disclose the reasons behind Microsoft’s decision to pull out of the deal.
Authorities have reportedly informed Nscale that the site may not receive a power supply until the 2030s, raising further concerns about the project’s timeline.
Technology publication TNW reported in July that the electricity grid would be unable to connect the facility in time for its planned opening.
Nscale said it remained committed to the project and was exploring alternative power sources and other locations across the UK.
“Our relationship with Microsoft remains strong and long-term, and this unfortunate London-wide grid issue has no impact on our other contracts,” a spokesman told the Telegraph.
Microsoft declined to comment to the Telegraph and did not immediately respond to Bloomberg’s request for comment.
Nscale is seeking to raise up to $3bn through an initial public offering as early as this month.
Microsoft and Anthropic account for about 85 per cent of the company’s contracts, according to its IPO filing.
