Microsoft has withdrawn from a deal to lease capacity at Nscale's 50-megawatt Loughton data center in the U.K. because of power-supply issues, a setback as Nscale prepares to go public. The facility was to host about 23,000 Nvidia GB300 chips for Microsoft Azure and was expected to go live by the end of this year, but that timeline no longer holds due to challenges with the U.K. power grid. Microsoft says it remains committed to Nscale and that the decision relates to a single site, while Nscale says it is exploring alternative power sources and its relationship with Microsoft remains strong. The article notes that clients can pull out of deals when projects are delayed, threatening revenue. Nscale recently filed for a U.S. IPO and last month raised $3.36 billion through convertible loan notes in a pre-IPO round.
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| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $4.0T |
| Close on 10/16/2026 | 528.95 |
| Change that session | -1.94% |
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