Microsoft has pulled out of an agreement with British cloud computing company Nscale for a data center project in the UK, Britain’s The Telegraph newspaper reported on Sunday.
The Telegraph did not specify why Microsoft decided to leave the project, Reuters reported . Microsoft was one of Nscale’s two largest customers. Nscale has reportedly faced several delays in developing the Loughton data center.
Nscale filed for an initial public offering (IPO) in the United States in September 2026.
The US technology giant recently terminated its agreement for a data center in Loughton, Essex, according to The Telegraph. The delays have raised concerns about when the facility will be ready to operate, according to The Telegraph. Microsoft and artificial intelligence company Anthropic were expected to be among its major customers, according to the company’s IPO prospectus.
These services help companies build and operate artificial intelligence systems.
The company supplies computing capacity, electricity infrastructure, data centers and software used to train and run AI models, according to its IPO filing cited by Reuters.
