Microsoft pulls out of Nscale’s UK AI data centre project – here is what happened

Microsoft has withdrawn from a major artificial intelligence (AI) data centre project in the UK over concerns about the power supply, delivering a significant setback to the government’s technological ambitions, The Guardian reported.

The facility, being developed by the British firm Nscale, was announced in 2025 and championed by ministers as the country’s largest sovereign AI data centre.

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