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Microsoft withdraws from major AI datacentre project in Essex

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

Microsoft has pulled out of a planned AI datacentre development in Essex, England, citing concerns over power supply. The project, led by UK firm Nscale, had been promoted by government ministers as the largest of its kind in the country, and Microsoft was its anchor tenant. Its withdrawal raises questions about whether the UK's electricity infrastructure can support large-scale AI expansion, and comes amid wider debate over datacentre energy demands.

Why now: The withdrawal casts doubt on the UK's ability to power large AI infrastructure projects it has publicly championed.

MicrosoftNscaleEssexUK government

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Evidence

• Microsoft pulls out of AI datacentre project in Essex over power supply concerns · The Guardian

  Development by UK firm Nscale heralded by ministers as largest of its kind in country loses anchor tenant

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