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Microsoft pulls out of UK AI datacentre project in Essex

Original: Microsoft pulls out of AI datacentre project in Essex over power supply concerns

Microsoft has withdrawn from a planned AI datacentre development in Essex, leaving a project once championed by UK government ministers as the largest of its kind in the country without its anchor tenant. The development, led by UK firm Nscale, had been heralded as a major step for Britain's AI ambitions. Reports say the decision was driven by concerns over securing an adequate power supply for the facility. The withdrawal raises questions about whether the UK grid can support large-scale AI infrastructure, and leaves ministers facing embarrassment over a flagship investment promise.

Why now: The withdrawal is fresh news undermining a government-touted flagship AI investment and highlights power supply constraints on UK datacentre growth.

MicrosoftNscaleEssexUK government

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