Microsoft withdraws from Nscale's Essex data center, leaving the site without its only announced customer

The Telegraph reported that Microsoft terminated its agreement for the Loughton, Essex project, according to Reuters, and that the company is one of Nscale's two largest customers. The newspaper gave no reason for the exit, though it said Nscale had faced repeated delays on the project. Nscale told Reuters that its relationship with Microsoft remains strong, that other contracts are unaffected, and that it is exploring alternative power sources for the site. Nscale's US IPO filing last month expected Microsoft and Anthropic to be its major customers. Microsoft did not immediately respond to Reuters requests for comment outside business hours. For founders renting capacity, the lesson is to check the power delivery date and contract terms for each site, not only the headline capacity a provider advertises. A data center without a firm grid connection can slip for years even after a signed lease.