Microsoft pulls out of AI datacentre project in Essex over power supply concerns
News Source
β’Sun, 18 Oct 2026 13:05:14 GMT
π° What Happened
Microsoft has pulled out of a huge AI datacentre planned for Loughton in Essex. The project was run by the British company Nscale and was due to open next year.
Microsoft was expected to be the main customer. Its exit means Nscale has lost the only customer it had publicly announced for the site.
The news came a month after reports that power supply problems would delay the project. In March, the Guardian revealed the site was still a working scaffolding yard.
π The Backstory
In 2025 the UK government called the Loughton site the country's largest "sovereign" AI datacentre. Ministers used it to launch their national AI plan.
Datacentres are the engine rooms of AI. They hold the chips that run chatbots and other tools, and they need enormous amounts of electricity and water.
Britain's power grid is already stretched. New connections in some areas wait years, which makes big builds risky for companies that need them online quickly.
π― Why It Matters
AI promises new jobs and investment, but it needs power that may not exist yet. Grand announcements can fade when the electricity does not show up.
Microsoft has pulled out of a huge AI datacentre planned for Loughton in Essex. The project was run by the British company Nscale and was due to open next year.
Microsoft was expected to be the main customer. Its exit means Nscale has lost the only customer it had publicly announced for the site.
The news came a month after reports that power supply problems would delay the project. In March, the Guardian revealed the site was still a working scaffolding yard.
In 2025 the UK government called the Loughton site the country's largest "sovereign" AI datacentre. Ministers used it to launch their national AI plan.
Datacentres are the engine rooms of AI. They hold the chips that run chatbots and other tools, and they need enormous amounts of electricity and water.
Britain's power grid is already stretched. New connections in some areas wait years, which makes big builds risky for companies that need them online quickly.
AI promises new jobs and investment, but it needs power that may not exist yet. Grand announcements can fade when the electricity does not show up.