Microsoft pulls UK data centre deal, putting Nscale flotation under pressure

Microsoft has withdrawn from a planned deal to anchor Nscale’s data centre in Loughton, Essex, citing construction delays and uncertainty over power supply. The decision puts pressure on the British AI infrastructure company’s planned New York flotation and could reduce the value of a potential payout to board member Nick Clegg.

Microsoft accounts for 40 per cent of Nscale’s contract revenue and had agreed to rent 23,000 AI chips at the site, which was intended to open next year. Grid executives now expect power may not be available until the 2030s. Nscale sought a $35 billion valuation in a flotation filing in September; Clegg owns 917,000 shares, or 0.12 per cent of the company, and could receive up to £30 million if it succeeds.