Grid struggles to keep pace as Microsoft abandons UK AI supercomputer plans

Power delays prompt withdrawal

Microsoft has reportedly stepped away from plans to use the Loughton facility, which Nscale had described as the UK’s largest sovereign AI datacenter. The project was intended to provide computing capacity for Microsoft’s Azure cloud services.

The site was expected to begin operating in 2027. But UK Power Networks warned Nscale that grid capacity might not be available until the 2030s, raising doubts about when the facility could run at its planned scale.

A large computing plan

The September 2025 announcement described a 50MW facility, with room to expand to 90MW. Plans called for 23,040 Nvidia GB300 GPUs, with the first chips expected in early 2027.

Nscale seeks other power options

Nscale said it remained committed to the Loughton project and the UK, while exploring alternative power sources for the site and other expansion locations. The company maintained that the project would go ahead despite the reported withdrawal.

The site had faced a separate delay: in March, it was reported to still be operating as a scaffolding yard. Nscale has since cleared the land, but securing electricity remains a challenge.

Connection demand grows

The power bottleneck is not limited to Essex. Ofgem proposed charging datacenter developers for connection requests, aiming to reduce speculative projects in the queue. Demand for new grid connections climbed from 41GW to 125GW in less than a year, with datacenters accounting for at least 80GW. In the United States, public support for datacenters also appears to be cooling amid concerns about electricity costs and environmental effects.