Microsoft Exits Loughton Data Centre Deal, Nscale Eyes NYSE

Quick Answer: Microsoft has exited its Microsoft Nscale data centre deal at the planned Loughton site northeast of London, a blow to UK AI ambitions. UK media reported that grid officials told Nscale the site would not have power until the 2030s. The move matters for Nscale shareholders because Microsoft and Anthropic drive a substantial portion of its committed revenue ahead of a planned New York Stock Exchange IPO targeting a valuation of up to US$35 billion.

Microsoft has exited its Microsoft Nscale data centre deal at a single site. The US technology giant had agreed last year to lease computing capacity from Nscale, the AI infrastructure provider backed by chip titan Nvidia.

Why Did Microsoft Exit the Nscale Loughton Data Centre Deal?

Microsoft Nscale data centre deal at the Loughton site in the UK — Microsoft exits its Nscale data centre deal at the planned Loughton site near London.

A Microsoft spokesman said “this decision relates to a single site”. The company added that it remains “committed to our partnership with Nscale”.

The Loughton capacity lease was announced alongside multi-billion-dollar US tech investments during president Donald Trump’s state visit to the UK. Those investments were touted as helping turn Britain into an AI superpower.

Microsoft Exits Loughton Data Centre Deal, Nscale Eyes NYSE — Photo: Free Malaysia Today

What Is Behind the Power Delay at Loughton?

Former prime minister Keir Starmer cited Loughton as the “largest UK sovereign AI data centre”. UK media reported that power grid officials told Nscale the site would not have access to power until the 2030s.

UK Power Networks, which does not disclose individual connections, told AFP on Monday that “many data centres, whilst they can connect to our distribution network, are awaiting works on the national transmission network, which we do not own”.

Grid timing: Loughton reportedly waits until the 2030s for power.
Electricity prices: High prices have also stalled some UK data centre projects.
Infrastructure upgrades: Large new data centres often need major upgrades, which adds to connection delays.

How Does the Loughton Setback Affect Nscale’s IPO and Revenue?

Nscale is gearing up for an initial public offering on the New York Stock Exchange, reportedly targeting a valuation of up to US$35 billion. Its IPO filing states that “a substantial portion of our committed revenue is driven by a limited number of customers with large contracts”, namely Microsoft and US AI giant Anthropic.

A person familiar with the matter said the Loughton deal accounted for only a small portion of Microsoft’s agreements with Nscale. Nscale said “this unfortunate London-wide grid issue has no impact on our other contracts”.

Nscale said it remains committed to Loughton and is exploring alternative power sources for the site. It is also looking at other UK expansion sites. Earlier this year, ChatGPT maker OpenAI withdrew from a partnership with Nscale and Nvidia to set up a UK version of Stargate, blaming high energy costs and regulatory uncertainty.

Is Any Bursa Malaysia Stock Linked to the Nscale Deal?

The source article names no Bursa Malaysia-listed company. Nscale’s planned listing is on the New York Stock Exchange, not Bursa.

Investors looking for AI infrastructure exposure on Bursa should review each listed company’s own disclosures. Our AI Stock Analysis for Malaysians guide covers how to screen these names. For Nscale’s listing timeline, see IPO Investing with M+ Global.

Key Takeaways

Microsoft says its exit relates to a single site, and it remains committed to Nscale.
UK media reported the Loughton site may not get power until the 2030s.
Microsoft and Anthropic drive a substantial portion of Nscale’s committed revenue, per its IPO filing.
Nscale’s IPO on the New York Stock Exchange reportedly targets a valuation of up to US$35 billion.
The source names no Bursa Malaysia-listed company linked to this deal.

Disclaimer: This article is for information only and is not investment advice. Always do your own research before making any investment decision on Bursa Malaysia or overseas markets.

Frequently Asked Questions

Why did Microsoft exit the Nscale data centre deal?

Microsoft said the decision “relates to a single site” and that it remains committed to its partnership with Nscale. The site in question is the planned Loughton data centre northeast of London.

When will the Loughton data centre get power?

UK media reported that power grid officials told Nscale the site would not have access to power until the 2030s. Nscale says it is exploring alternative power sources for the site.

Is Nscale listed on Bursa Malaysia?

No, the source article describes Nscale as gearing up for an IPO on the New York Stock Exchange, reportedly targeting a valuation of up to US$35 billion. The article names no Bursa Malaysia listing for the company.

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