Microsoft has withdrawn from a partnership with British cloud infrastructure provider Nscale to build a major data center in Loughton, Essex. Microsoft had been slated to anchor the facility, and its departure raises significant uncertainty over Nscale’s planned IPO, which was expected to raise up to $3 billion.
Microsoft did not give a reason for its withdrawal. The project has reportedly faced significant delays, with local authorities unable to guarantee a grid connection for the data center until the 2030s.
The withdrawal is a setback for Nscale, which relies heavily on major customers such as Microsoft.