Microsoft pulls out of AI datacentre project in Essex over power supply concerns

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Development by UK firm Nscale heralded by ministers as largest of its kind in country loses anchor tenant…

The development of a huge AI datacentre hailed by the UK government has received a fresh setback after Microsoft pulled out of the project over concerns about power supplies.

The development by the British company Nscale, heralded by ministers as the country’s largest AI datacentre when it was announced in 2025, was planned to open at Loughton in Essex next year.

Doubts had already emerged about the scheme after the Guardian revealed in March that the location was still an operational scaffolding yard.