Microsoft Cancels AI Data Center Deal Due to Power Delay

The data center in Loughton, Essex, was supposed to host 23,040 Nvidia chips and provide 50 megawatts of computing power to Microsoft’s Azure cloud. However, the local power supplier, UK Power Networks, informed Nscale that sufficient capacity might not be available until around a decade from now. Nscale has since cleared the site and is exploring alternative energy options.

Nscale, a company that emerged from Bitcoin mining, had announced the project in collaboration with Microsoft, Nvidia, and OpenAI. The company has stated that its contracts with Microsoft remain in place.

The delay in power supply is a significant challenge for Nscale, which has already seen changes in the mining industry. Public miners have announced over $70 billion in contracts for AI and high-performance computing, but the industry is facing increasing costs and reduced profitability.