Microsoft cancels nScale Essex AI data center after grid warning
Microsoft has pulled the plug on its big AI data center project with Nscale in Essex after UK Power Networks warned there won't be enough grid capacity until the 2030s.
The site was supposed to run 23,040 NVIDIA chips and deliver major power to Microsoft's Azure cloud by early 2027.
Even with this setback, Nscale says it's exploring new energy options and still works with Microsoft on other projects.
Nscale faces higher AI build costs
Nscale started out as a bitcoin mining company but is finding the jump to AI much tougher and pricier.
Building an AI facility can cost over 10 times more than a bitcoin mining site, making things tricky when there's already a huge backlog for electricity in the UK.
This isn't just Nscale's problem; across the industry, massive new AI contracts are putting serious pressure on power supplies in the UK.