Grid connection delays
Microsoft has reportedly withdrawn from a contract to participate as a key customer of an AI data center planned for Loughton in the United Kingdom. The decision followed grid connection delays that pushed the facility's expected operational date into the 2030s. The news was first reported by British newspaper The Telegraph.
The project was announced during US President Donald Trump's visit to the United Kingdom in 2025. The initial plan was to build 50 megawatts (MW) of AI computing infrastructure and expand it to as much as 90MW using 23,040 Nvidia GB300 processors. The target operational date was early 2027.
However, grid connection delays pushed expected power availability back by several years, leaving Microsoft unable to meet its original deployment schedule.
Microsoft was the facility's main tenant customer, while Nscale was the company owning and building the data center. Nscale is a British AI infrastructure company that builds and operates data centers providing cloud services for AI.
Companies say partnership continues
In a statement to Network World, a Microsoft spokesperson said, “We remain committed to continuing our partnership with Nscale, including building robust digital infrastructure and supporting AI growth worldwide. This decision concerns a single site.”
An Nscale spokesperson told Reuters, “Our relationship with Microsoft remains strong and long-term. This unfortunate London-wide grid issue does not affect other contracts.”
Nscale added, “Our commitment to the Loughton project and investment in the United Kingdom remains unchanged. We are reviewing alternative power sources for the site and additional expansion sites in the United Kingdom.”
Regarding the termination of the contract for the Loughton data center in Essex, a Microsoft spokesperson explained, “This decision concerns a single site.” Nscale faced a setback in advancing the project after grid authorities informed it that power would not be available at the site until the 2030s.
An Nscale spokesperson told Reuters, “Our relationship with Microsoft remains strong and long-term. This unfortunate London-wide grid issue does not affect other contracts.”
The spokesperson added, “Our commitment to the Loughton project and investment in the United Kingdom remains unchanged. We are reviewing alternative power sources for the site and additional expansion sites in the United Kingdom.”
Contract concentration and power availability
Although a young company, Nscale has grown rapidly in a short time. Its total contract value increased from $100 million to more than $103 billion in 2 and a half years. However, it is highly dependent on Microsoft and Anthropic. The 2 companies account for about 85% of its total contracts.
The timing also creates pressure. Nscale filed for a US initial public offering (IPO) only in September 2026. Losing Microsoft's contract at the Loughton project could add uncertainty for investors assessing whether Nscale can deliver its planned infrastructure on time.
The power supply problem in Loughton shows that securing electricity is a global challenge, not just a US issue. It suggests that securing power could be as important as securing advanced processors, capital and data center construction capabilities.
Original Korean article: cio.com
English brief by Korea Wind Intelligence, koreawindintel.com
