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Industry AI Minute Newsroom 2026-10-18

Microsoft walked away from Nscale's first UK data center.

Microsoft walked away from Nscale's first UK data center.

Microsoft has pulled out as anchor tenant of Nscale's planned data center in Essex, England, the Telegraph reported Sunday. Microsoft was to rent 23,000 Nvidia AI chips there, but grid power may not arrive until the 2030s. Nscale says it stays committed and is looking for other power sources.

Why it mattersEven a signed AI deal can collapse when the power grid is the bottleneck. Microsoft made up about $43.8 billion of Nscale's $103 billion order book, so its stock listing faces hard questions.

✓ Verified · 4 sources

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