Microsoft has walked away from plans to anchor the UK's largest AI supercomputer in Essex, citing the lack of grid electricity. The company terminated its agreement with Nscale for the Loughton site, which was expected to host 23,040 Nvidia GB300 GPUs in a 50MW facility with room to grow to 90MW. The project was announced in September 2025 as part of Microsoft's £22bn UK investment pledge.
The problem is power. UK Power Networks had warned that grid capacity might not be available until the 2030s, long after the planned 2027 start. Microsoft's departure leaves Nscale without a publicly named customer, though the startup insists the project is still going ahead and is exploring alternative power sources.
The episode reflects wider grid strain. Ofgem has proposed charging datacenter developers for connection requests as demand surged from 41GW to 125GW in under a year, with datacenters accounting for at least 80GW. Some developers are turning to gas generation, while local opposition is growing, as seen with Google's Waltham Cross facility.