Microsoft ends agreement for Essex AI datacentre after power supply delays
Microsoft has terminated its deal to build a supercomputer at a planned facility in Loughton, Essex, due to unresolved power grid issues.
Project setback confirmed by sources
Nscale announced the project was hailed as the UK's largest sovereign AI datacentre when ministers highlighted it in their strategy. The company stated that Microsoft informed them they were pulling the plug on their agreement last month. This decision leaves Nscale without its only publicly announced customer for the specific Essex site.
Power grid delays explained
Reports indicate the location was originally scheduled to receive power supply at the end of the year. External sources now say this connection will not happen until the 2030s because of a London-wide grid issue. Nscale told the BBC that this unfortunate delay has no impact on their other contracts overseas.
Future plans and jobs
A spokesperson for Nscale said they are exploring alternative power sources for the site in addition to other expansion sites. The facility is expected to create 250 permanent jobs when it eventually opens despite the current uncertainty. Microsoft remains on board for another project the company has in Norway.
2 outlets, different leads
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The Guardian
Microsoft drops huge AI datacentre project in Essex over power supply concerns
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BBC News
Microsoft pulls out of UK's largest AI data centre
Reported by
2 independent outlets. Headlines as published. Links open the original report.