Microsoft pulls out of UK's largest AI data centre
Tech firm Nscale says it is still committed to building the site in Essex.
Microsoft withdraws from UK’s biggest AI data centre
Nscale said it still intended to build a £2bn AI data centre in Loughton
A technology firm has said it still plans to build the UK’s largest AI data centre, even after Microsoft pulled out of the scheme.
Last year, Nscale announced it had committed £2bn to build and launch a groundbreaking facility in Loughton, Essex.
But the BBC understands that Microsoft, which said it would finance a supercomputer at the site, has ended its involvement.
A spokesperson for Nscale said it was looking at alternative power sources and that its relationship with Microsoft remained strong for their other projects together overseas. Microsoft declined to comment.
"We remain committed to both the Loughton project and the UK and we are exploring alternative power sources for the site, in addition to other expansion sites in the UK," Nscale said.
"Our relationship with Microsoft remains strong and long-term."
The data centre had been due to get its power supply by the end of the year.
Nscale has been told this will not now happen until the 2030s.
"This unfortunate London-wide grid issue has no impact on our other contracts," Nscale told the BBC.
Nscale and Microsoft are still collaborating on projects in Norway, Portugal and the United States.
The Loughton site is expected to create 250 permanent jobs when it eventually opens.
Only last month, Microsoft said some of the $30bn (£22bn) it was investing in the UK would be used to fund the Loughton supercomputer.