Technology company Nscale has reaffirmed its commitment to building what is expected to become the UK’s largest AI data centre, despite Microsoft withdrawing from the project.
Nscale announced last year that it had committed £2bn to developing a pioneering AI facility in Loughton, Essex. Microsoft had previously planned to fund a supercomputer at the site but has now terminated its involvement in the project.
An Nscale spokesperson said the company was exploring alternative power sources while maintaining that its relationship with Microsoft remained strong across their other international projects. Microsoft declined to comment on the development.
“We remain committed to both the Loughton project and the UK and we are exploring alternative power sources for the site, in addition to other expansion sites in the UK,” Nscale said.
“Our relationship with Microsoft remains strong and long-term.”
The data centre was originally scheduled to receive its electricity supply by the end of this year. However, according to reports, Nscale has been informed that the connection will not be available until the 2030s, potentially delaying the development significantly.
“This unfortunate London-wide grid issue has no impact on our other contracts,” Nscale told the BBC.
Despite the setback in Essex, Nscale and Microsoft continue to collaborate on projects in Norway, Portugal and the United States.
The Loughton data centre is expected to create around 250 permanent jobs once it becomes operational, although the revised power connection timeline could affect when those opportunities materialise.
Only last month, Microsoft announced that part of its $30bn (£22bn) investment in the UK would be directed towards funding the Loughton project.
