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Microsoft cancels £2bn Nscale UK data centre deal, jeopardising IPO
Microsoft has terminated its agreement to anchor Nscale’s planned £2 billion data centre in Loughton, Essex. The cancellation is due to power supply delays, with the grid not expected to provide sufficient electricity until the early‑to‑mid 2030s, pushing back the original 2027 opening. Nscale, which was seeking a NYSE listing with a target $35 billion valuation and a $3 billion raise, loses an anchor tenant that accounted for about $43.8 billion of its $103.4 billion backlog. The company says it remains committed to the project and is exploring alternative power sources. The setback may affect confidence in Nscale’s ability to convert its backlog into revenue.