Microsoft has pulled out of a UK data center deal with British AI infrastructure firm Nscale, giving up its role as anchor tenant of the company's first British site in Loughton, Essex. An Nscale spokesperson told The Information that the cancellation came after the cloud provider faced delays accessing power; The Next Web reported that authorities told Nscale not to expect a grid supply until the 2030s. The Telegraph reported that Microsoft had planned to rent about 23,000 Nvidia AI chips at the site. Nscale said it remains committed to the site and is looking at other power sources and UK locations, calling its Microsoft relationship "strong and long-term"; the move comes as the startup prepares an IPO, with Microsoft and Anthropic accounting for roughly 85% of its contracts.