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Microsoft pulls out of Nscale's Essex AI data centre

A tech company has said it still plans to build the UK's largest AI data centre despite Microsoft pulling out of the project.

DKCISSP News DeskBBC News18 Oct 2026, 10:16 pm
Microsoft pulls out of Nscale's Essex AI data centre
Image courtesy of BBC News. Original report
DKCISSP REPORT

A tech company has said it still plans to build the UK's largest AI data centre despite Microsoft pulling out of the project.

Nscale announced last year it had pledged £2bn to build and open a pioneering facility in Loughton , Essex.

However, the BBC understands that Microsoft, which said it would fund a supercomputer at the site, has terminated its involvement.

But as first reported by the Telegraph on Sunday , Nscale has been told this will not happen until the 2030s.

Only last month, Microsoft announced that some of the $30bn (£22bn) it was investing in the UK would be used to fund the Loughton supercomputer.

A spokesperson for Nscale said it was exploring alternative power sources and its relationship with Microsoft remained strong for their other projects together overseas.

The Loughton site is expected to create 250 permanent jobs when it eventually opens.

The data centre was due to receive its power supply at the end of the year.

Nscale and Microsoft are still working together on projects in Norway, Portugal and the United States.

What happened

A tech company has said it still plans to build the UK's largest AI data centre despite Microsoft pulling out of the project.

Nscale announced last year it had pledged £2bn to build and open a pioneering facility in Loughton , Essex.

However, the BBC understands that Microsoft, which said it would fund a supercomputer at the site, has terminated its involvement.

What changed

But as first reported by the Telegraph on Sunday , Nscale has been told this will not happen until the 2030s.

Only last month, Microsoft announced that some of the $30bn (£22bn) it was investing in the UK would be used to fund the Loughton supercomputer.

A spokesperson for Nscale said it was exploring alternative power sources and its relationship with Microsoft remained strong for their other projects together overseas.

Who is affected

The Loughton site is expected to create 250 permanent jobs when it eventually opens.

The data centre was due to receive its power supply at the end of the year.

Why it matters

Nscale and Microsoft are still working together on projects in Norway, Portugal and the United States.

Attribution

BBC News: A tech company has said it still plans to build the UK's largest AI data centre despite Microsoft pulling out of the project.

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