Microsoft have pulled out of an AI data centre development over concerns about power supply, reports The Guardian.
The project was expected to be Essex’s largest data centre when it was announced in 2025, with an estimated opening in Loughton next year.
The development by UK company Nscale has hit multiple problems that meant that it would face a long wait before coming online.
Questions about how feasible the project was began in March, when it was revealed that the site was still an operational scaffolding yard.
It then emerged earlier this month that UK Power Networks (UKPN), had told the development company that it would not be able to supply enough power to the data center until the early to mid-2030s.
A spokesperson at Microsoft said: “We remain committed to our partnership with Nscale, including work to build robust digital infrastructure and support AI growth globally. This decision relates to a single site.”
The end of the deal with Microsoft means Nscale has lost its only publicly announced customer for the Essex data centre. It is understood that the technology company remains on board for another project the company has in Norway.
The company in charge of the development says it “remains committed” to the project as it is exploring alternative power supply options.
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