Microsoft pulls out of UK data centre project but keeps investment pledge

Summarised from 2 outlets · Updated 21 Oct, 00:20 · Archive

Microsoft has withdrawn from a deal to lease computing capacity at the UK's largest proposed AI data centre in Essex but says its £22 billion UK investment commitment remains unchanged.

Microsoft has withdrawn from a deal to lease computing capacity at Nscale's proposed data centre in Loughton, Essex, which was planned to be the UK's largest AI data centre. The withdrawal follows concerns that the site will not have access to the power grid until after 2030.

Darren Hardman, chief executive of Microsoft UK and Ireland, told the Press Association that the firm remains fully committed to its £22 billion investment plan between 2025 and 2028. He said the data centre deal was 'a small component' of that broader investment package and that the decision would not change Microsoft's overall UK strategy.

Microsoft stressed it remains 'committed' to its relationship with Nscale and plans to work with the data centre on sites outside the UK. The company also released research showing rapid growth in AI adoption among British businesses and workers over the past year. Mr Hardman pointed to Manchester as an example of an area where AI adoption is supporting economic growth.

How it is being reported

• Microsoft still committed to £22bn UK investment despite data centre withdrawalIt came as the technology giant released new research showing rapid growth in the adoption of AI technology by British businesses and workers.Independent Tech · 21 Oct, 00:01
• Microsoft still committed to £22bn UK investment despite data centre withdrawalIt came as the technology giant released new research showing rapid growth in the adoption of AI technology by British businesses and workers.Evening Standard · 21 Oct, 00:01

In this story: Microsoft · Nscale · Loughton · Essex · Darren Hardman · Andy Burnham · Manchester

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