# Microsoft rejects multibillion-dollar AI deal with UK’s Nscale, FT reports

- URL: https://talkfuse.com/story/microsoft-rejects-multibillion-dollar-ai-deal-with-uks-nscale-ft-reports/
- Published: 2026-11-05T05:12:22+00:00
- Updated: 2026-11-05T06:26:15+00:00
- Original publisher: CNA (publisher lean: Centre)
- Original article: https://www.channelnewsasia.com/business/microsoft-rejects-multibillion-dollar-ai-deal-uks-nscale-ft-reports-6526491
- Topics: AI, Technology, UK, World

## Key points

- Microsoft reportedly rejected a major expansion of its Nscale computing deal.
- The Texas proposal could have been worth tens of billions of dollars.
- Delays to a separate Essex project pushed expected power supply into the 2030s.

## Summary

Microsoft has rejected an option to more than double its existing agreement to rent computing power from Nscale at a Texas data centre, according to a Financial Times report. The potential deal was worth tens of billions of dollars; the decision comes amid delays to a separate Nscale project in Essex and could affect expectations for the companies’ future business.

The report, citing people familiar with the matter, has not been independently verified by Reuters, and neither company immediately commented. Microsoft recently withdrew from a deal to anchor Nscale’s planned Loughton data centre after delays to its power connection pushed supply into the 2030s. Nscale, backed by Nvidia, filed for a US public listing in September and is also reported to be discussing a possible $45 billion computing deal with Anthropic.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.