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MON, 19 OCT · 85 ITEMS
"Microsoft drops huge AI datacentre project in Essex over power supply concerns" — The Guardian · AI & Technology
Microsoft has pulled out of its agreement with Nscale, a British AI-infrastructure startup, to be the anchor customer at a planned massive AI data centre in Essex. The stated reason is that grid officials reportedly told Nscale the site will not receive a power connection until the 2030s, which made the project unworkable for Microsoft. The headline's 'drops' is a bit loose: the data centre is Nscale's project, and Microsoft has withdrawn from the deal rather than cancelling the whole development. The exit lands at a delicate moment because Nscale is reported to be preparing a $3bn IPO.
This is solid but not yet primary-source-confirmed: the Guardian is reporting, following an earlier Telegraph story, that Microsoft has exited the Nscale Essex deal over power-supply timing. No direct Microsoft or Nscale statement appears in the visible text, so the precise contractual status is not confirmed by the companies, but the core fact is consistently reported by multiple outlets.
This is genuinely new reporting from 18 October 2026, not a resurfacing of older material.