Microsoft Cancels Nscale’s 50MW UK Data Center Lease Over Grid Delays
The facility may not receive grid power until after 2030 and was expected to host 23,000 Nvidia GB300 chips. Nscale says other Microsoft contracts remain unaffected and is seeking another tenant and alternative power sources.
Microsoft has canceled its 50MW data center lease with Nvidia-backed Nscale in Essex, UK, after it learned the site may not receive grid power until after 2030, the Financial Times reported. The canceled facility was expected to house 23000 Nvidia GB300 chips and contribute to Microsoft’s broader 22 billion UK investment initiative. Nscale, which is targeting a New York IPO at a 35 billion valuation, is seeking a replacement tenant and alternative power sources. The company says its other Microsoft contracts are unaffected.
Nscale’s separate 45 billion agreement with Anthropic could also be canceled if financing or delivery deadlines are missed. The company had 25000 advanced AI chips operational in August, compared with nearly 500000 planned. Across the UK, 315 data centers are awaiting grid connections requiring 73GW, against peak electricity demand of 45GW.