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      Microsoft Withdraws from Major AI Data Center Project in the UK

      Microsoft has exited a significant artificial intelligence data center project in Essex, United Kingdom, developed by the local company Nscale. This decision comes amid concerns regarding the power supply for the facility, which UK National Grid officials have indicated may not be operational until the 2030s. Originally slated to open next year, the site currently resembles a scaffolding yard rather than an active construction zone.

      The project was touted by the UK government as the largest data center in the country, integral to its 2025 artificial intelligence strategy. Microsoft had intended to finance the construction of a supercomputer at the site, but with the termination of this collaboration, Nscale has lost its only publicly announced client. Despite this setback, Nscale has expressed confidence in its ongoing relationship with Microsoft, noting that they will continue to work together on other international projects, including one in Norway.

      Nscale is exploring options to generate power on-site and expedite the connection to the grid. The company has garnered support from major tech firms, including Nvidia, and is planning to go public in the United States this year, with a potential valuation of $35 billion.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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