Microsoft walked away from a UK data center plan this week. The site sits in Loughton, Essex. Nscale owns it. Microsoft was set to be the main tenant.
The plan called for 50 megawatts of power. It could grow to 90 megawatts. It would have housed over 23,000 Nvidia GPUs. It would have created 250 jobs. All of it stalls on this site now.
The cause is the power grid. UK Power Networks runs the grid across London. It told Nscale the grid lacks enough power until the early or mid-2030s. The site was due to open next year.
A Microsoft spokesperson gave a short reason. "This decision relates to a single site," the spokesperson said. Microsoft said it still works with Nscale on sites in Norway, Portugal, and the US. Nscale said it remains committed to the Loughton project. It said it is "exploring alternative power sources for the site."
The timing stings. Nscale is close to a Wall Street listing worth up to $35 billion. It also just reached a new $45 billion compute deal with Anthropic, for a site in West Virginia. One country gave Nscale a huge new deal. Another country just pulled its anchor tenant.
Why did this story catch fire? Readers can picture a stalled building and a blocked plug. It turns a huge AI boom into one plain problem. Essex simply ran short of power.
What does the reach say about the people building AI? Companies now plan AI growth around chips and cash. This week showed power can stop a project even when the money and the chips stand ready. The grid, rather than the GPU, decided this one. Nscale still plans more UK sites. It says it is hunting for fresh power sources nearby.