Microsoft pulls out of £2bn AI data centre project in Loughton

Microsoft just pulled out of a massive £2bn artificial intelligence data centre project in Loughton, according to the BBC. Nscale, a specialized cloud and infrastructure company, planned to build and open the pioneering facility in Essex to house a powerful supercomputer. But the project hit a major wall when the local power grid told builders the site will not get electricity until the 2030s instead of this year. Microsoft, which just last month said it would fund the supercomputer using part of its $30bn investment in the UK, terminated its involvement in the site. A spokesperson for Nscale said the company remains committed to the £2bn project and is now looking for alternative power sources. "We remain committed to both the Loughton project and the UK and we are exploring alternative power sources for the site, in addition to other expansion sites in the UK," Nscale said. Microsoft declined to comment on the sudden exit from the Essex development. Nscale insists its relationship with Microsoft remains strong on other tech ventures in Norway, Portugal and the United States. The data centre was expected to create 250 permanent jobs when it finally opens its doors. For local businesses and contractors counting on the huge construction boom, the grid delay means a long wait before any shovels hit the ground for good. When the power grid tells a £2bn tech project to wait a decade, even Silicon Valley giants have to pack up their servers.