Microsoft Pulls Out of UK Data Center Firm Nscale's Project

Nscale is a UK data center company that provides computing power, electricity and other infrastructure for training and running AI models. Its rivals include CoreWeave, Nebius, Crusoe and Lambda. The company has filed for an IPO in the US, with Microsoft and Anthropic as its main customers.

According to The Telegraph, Microsoft, one of Nscale's two biggest customers, recently ended its cooperation on the Loughton data center project in Essex, England. The report did not say why Microsoft pulled out, and neither company has responded to requests for comment.

Nscale has grown fast since its founding. In just two and a half years, its total contract value jumped from 100 million dollars to more than 103 billion dollars. This move is a major blow to its multi-billion-dollar IPO plan.