Microsoft exits Nscale Essex data center deal citing grid delays
Business
Microsoft has decided to step away from a huge data center deal with Nscale in Essex, mainly because ongoing electricity grid delays could cause power issues until the 2030s.
The site was meant to open next year and was part of Microsoft's big UK investment push.
Nscale US listing hopes hit setback
Nscale, hoping for a $35 billion US stock market debut, now faces a major setback since it planned to fill the facility with 23,000 NVIDIA AI chips.
This isn't just about one company: Microsoft's move highlights bigger headaches for the U.K.'s AI infrastructure: grid problems and high energy costs have already stalled other projects too.
Still, Nscale says it's sticking around and looking at new energy solutions, with backing from NVIDIA and other investors.