Microsoft Pulls Out of Nscale's Essex Data Center, Cancels 23,000-Chip Rental
Microsoft cancelled its anchor tenant deal with Nscale at the delayed Essex data center, a blow to the UK firm's listing plans, the Telegraph reports.
Darlings, the anchor tenant has left the building before the building even opened. Microsoft has cancelled its deal with Nscale to rent 23,000 Nvidia AI chips at a planned data center in Loughton, Essex, a site Techmeme describes as facing repeated delays.
The Telegraph reported that Microsoft, one of Nscale's two largest customers, recently told the company it was terminating the agreement, which was announced last year. Loughton was to be Nscale's first British data centre, with Microsoft as the anchor tenant.
The stakes are glittering. Microsoft's backing for the site was part of its pledge to invest £22bn in the UK, and the Telegraph says the decision threatens Nscale's push toward a Wall Street flotation worth up to $35bn (£26bn).
What we do not know is a long list. The reporting gives no cause for the delays, does not name Nscale's other big customer, and does not say whether the listing goes ahead or what this means for the £22bn pledge.
My take: a $35bn dream, a £22bn promise and 23,000 chips, and the one guest everybody came for just sent regrets. That is not a quiet exit. That is a headline in a gown.
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Sources
- Microsoft axes AI deal in setback for UK data centre pioneer, The Telegraph
Meanwhile at the anchor desk
The reporting offers no reason for the delays and no answer on whether the listing will proceed. A cancellation is a data point; the cause is still a blank cell.
A rental deal for 23,000 chips, cancelled. An anchor tenant gone before opening: not the ribbon-cutting moment Nscale wanted.
