EUROPE 🔗 Part of: Tech and Cybersecurity News (63) · 19 Oct 2026 · 04:20 GMT ·2 min read

Microsoft Ends Funding for Loughton AI Data Centre Amid Power Grid Delays

Microsoft ended its agreement to fund a supercomputer at Nscale's planned AI data center in Loughton, Essex.

NEUTRALITY 86 · BALANCED· 2 sources

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Microsoft ended its agreement to fund a supercomputer at Nscale's planned AI data center in Loughton, Essex. This decision follows reports from UK Power Networks (UKPN) that the site cannot receive sufficient electricity until the early to mid-2030s. Nscale intends to proceed with the £2 billion project despite the withdrawal. The UK government previously designated this site as the country's largest AI data center. The location remained an active scaffolding yard as of March 2026. Plans for the center included support for 250 permanent jobs.

Context

In 2025, the UK government announced the "Loughton" project. The facility serves as the nation's largest AI data center. This initiative formed part of a $30 billion investment in UK artificial intelligence infrastructure. Microsoft pledged the funds. The company intended to build a supercomputer at the site. An infrastructure bottleneck halted the plan. Microsoft terminated its agreement to fund the supercomputer.

Supportive perspectives

Nscale intends to continue the £2bn project despite the loss of its anchor tenant. The company says it remains committed to the project and expects the facility to create 250 permanent jobs upon completion.
The partnership between the two companies remains active in other regions. Microsoft and Nscale continue to collaborate on separate projects in Norway, Portugal, and the United States.
Nscale is currently pursuing a public listing on Wall Street this year. The company is targeting a potential valuation of $35bn.

Critical perspectives

Infrastructure delays threaten the original project timeline. UK Power Networks told Nscale that the Loughton site will lack sufficient power until the early to mid-2030s. This shortage delays the site's power supply by several years.
Development at the site remains behind the original schedule. As of March 2026, the location designated for the country's largest AI data center operated as a scaffolding yard.
The project involves figures with ties to the company's leadership. Nick Clegg, the former UK deputy prime minister, serves on the Nscale board. He holds a 0.25% stake in the company. This stake reaches a value of $88 million if the firm hits its $35 billion valuation target.
The Guardian reports the power delay could undermine Nscale's ambition to float on Wall Street this year at a potential $35bn valuation.