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Nscale Vows to Build UK’s Largest AI Data Centre After Microsoft Pulls Out

Despite Microsoft’s withdrawal, the Essex‑based firm says it will proceed with the £2 bn project, seeking new power sources and maintaining ties on overseas ventures.

Nscale team at the Loughton site preparing for the AI data centre
Nscale Vows to Build UK’s Largest AI Data Centre After Microsoft Pulls Out

Last year, Nscale pledged £2 bn to construct the United Kingdom’s biggest AI data centre in Loughton, Essex. The project, which was to host a supercomputer funded by Microsoft, has faced a setback after the tech giant announced it would no longer be involved.

Speaking to the BBC, a Nscale spokesperson said the company remains committed to the Loughton site and is actively exploring alternative power sources. He added that the firm’s relationship with Microsoft stays strong for other international projects in Norway, Portugal and the United States.

“We are exploring alternative power sources for the site, in addition to other expansion sites in the UK,” the spokesperson said. “Our relationship with Microsoft remains strong and long‑term.”

The Loughton data centre was expected to receive its power supply by the end of the year, but the Telegraph reported that this will not occur until the 2030s due to a London‑wide grid issue. Nscale stated that the delay would not affect its other contracts.

When completed, the facility is projected to create 250 permanent jobs. Microsoft had previously earmarked part of its £22 bn investment in the UK for the Loughton supercomputer, but has since withdrawn.

Nscale and Microsoft continue to collaborate on projects overseas, but the Loughton venture will now move forward without the former partner’s backing.

Written by

Daniel

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