Microsoft has withdrawn from a major AI datacentre project in Loughton, Essex, due to concerns regarding power supplies. The development, by British company Nscale, was intended to be the country's largest AI datacentre when announced in 2025 and was planned to open next year.
Microsoft was expected to be the anchor tenant for the project. Doubts about the scheme had previously emerged in March when it was revealed the location was still an operational scaffolding yard. The withdrawal comes a month after reports of power supply problems causing a lengthy delay for the project to come online.
The Loughton project was highlighted by Keir Starmer's government in 2025 as part of the UK's AI strategy. Nscale has stated it remains committed to the Loughton project and is exploring alternative power sources, in addition to other expansion sites in the UK.