Microsoft Abandons UK Supercomputer Project Amid Gridlock

As first reported by The Register, Microsoft has pulled out of a deal with Nscale, a British AI infrastructure startup, for a planned supercomputer project in Loughton, Essex. The project, which was touted as the UK's largest sovereign AI datacenter, was intended to house 23,040 Nvidia GB300 GPUs in a 50MW facility with potential expansion to 90MW.

While the site was slated to begin operations in 2027, The Guardian reported that UK Power Networks warned Nscale that necessary grid capacity might not be available until the early to mid-2030s. A UK Power Networks spokesperson told The Register that while many datacenters can connect to the distribution network, they are often awaiting works on the national transmission network.

The withdrawal is a significant blow to a project previously highlighted as part of a £22 billion UK investment announcement by Microsoft in September 2025. Nscale stated to The Register that it remains committed to the Loughton project and is exploring alternative power sources, though Microsoft's departure leaves the company without a publicly announced customer for the site.

This failure underscores a broader systemic crisis in UK infrastructure. According to The Register, demand for new connections climbed from 41GW to 125GW in under a year, with at least 80GW attributed to datacenters. To combat speculative projects clogging the queue, Ofgem proposed charging developers for connection requests earlier this year. Some developers have since pivoted to gas-powered generation to bypass the years-long wait for grid connectivity.