Microsoft cancels UK AI data center project due to power delays

Microsoft has walked away from Nscale's Loughton site after the local grid operator said full power won't arrive until the 2030s Microsoft has pulled out of a planned artificial intelligence data center in the United Kingdom. The reason is not a chip shortage, a funding gap, or a change in strategy. The building simply couldn’t get enough electricity. The facility, developed by AI infrastructure company Nscale in Loughton, Essex, was supposed to supply computing power to Microsoft’s Azure cloud business. Microsoft ended its anchor-tenant agreement for the site on October 18, 2026. The trigger was UK Power Networks telling the project that adequate grid power would not reach the site until the early to mid-2030s. The data center was meant to open in late 2026 or early 2027.

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