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A major AI data center project in the UK has been left without a key backer after Microsoft decided to pull out due to power shortages.
What happened
The project, developed by Nscale, was set to be the largest AI data center in the UK, with a planned investment of $2.7 billion. However, Microsoft has ended its plan to fund a supercomputer at the site, citing power shortages as the reason.
According to reports, Nscale was informed that the site will not receive grid power until the 2030s. The company is now exploring alternative power sources for the site. Microsoft has stated that it remains committed to its partnership with Nscale and is exploring other expansion sites in the UK.
The project was initially announced in 2025 as part of Microsoft's $30 billion investment in AI for the UK. The supercomputer was set to hold over 23,000 Nvidia chips, with arrival scheduled for early 2027.
