Tech giant Microsoft has abandoned plans to lease computing capacity from a datacentre planned to be the largest in the UK
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Nscale, a UK-based startup backed by NVDIA, plans to build an AI datacentre in Loughton, Essex that would be the largest in the UK.
It has committed £2bn to the project which was announced last year. However, it has been dogged by issues around the energy sources which have led to lengthy delays.
According to the Daily Telegraph, national power grid officials told Nscale that it did not expect the datacentre to have a power supply until 2030.
This led Microsoft, one of Nscale's largest clients, to pull out of the deal.
Nscale is still committed to building the datacentre and expects to retain Microsoft as a client.
"Our relationship with Microsoft remains strong and long-term, and this unfortunate London-wide grid issue has no impact on our other contracts," an Nscale spokesperson told Reuters.
"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."
Nevertheless, Microsoft's withdrawal is a blow for Nscale, which filed for an IPO in the US in September.