Microsoft Reportedly Quits Nscale’s Loughton Data Centre Ahead of $3bn IPO Plan

Microsoft (NASDAQ: MSFT) has pulled out of a planned UK data-centre deal with Nscale, the Telegraph reported today. Microsoft had been due to be anchor tenant, the main customer committing to the site, at Nscale’s Loughton project in Essex. The Telegraph gave no reason, and Microsoft has not commented.

Shares closed Friday at $529.05, down 1.93% from $539.44, in a session that ended before the news. On Tuesday the stock touched an intraday high of $551.15 and closed at $543.45. Friday’s close is still about 33.7% above its $395.63 close on the 15th of July.

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Power for Loughton is reportedly not expected until the 2030s, with the site already hit by a grid issue.

Nscale depends heavily on two customers. Microsoft and Anthropic account for about 85% of its contracts, according to its IPO filing, and Nscale is said to want to raise as much as $3bn in a listing as soon as this month. That has not been confirmed. Its Norway flagship is about six months behind, with 6.4MW operating of a planned 30MW.

The backdrop is a weak week for AI infrastructure. CoreWeave fell 25%, its worst week since November, and Firmus abandoned its IPO.

A company spokesman said:

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 spokesman

The spokesman also called the Microsoft relationship strong and long-term, and said the grid issue does not affect other contracts. Microsoft’s next scheduled catalyst is its earnings report, listed for Wednesday 28 October, after the US close.