Microsoft pulls out of UK data center deal with Nscale, Telegraph reports

Microsoft has terminated its agreement to anchor British cloud provider Nscale's data center in Loughton, Essex, according to a Telegraph report carried by Reuters on October 18, 2026. Microsoft is one of Nscale's two largest customers, and Nscale filed for a US initial public offering last month, with Microsoft and Anthropic expected to be major customers according to its prospectus. The Nvidia backed company reports more than $103 billion in total contracted value built up in about two and a half years.

Sourcing limitation, stated openly: this item rests on a single reporting chain, the Telegraph's reporting as carried by Reuters, and it has not been independently confirmed elsewhere. Reuters states that the Telegraph did not specify why Microsoft withdrew, and that Microsoft and Nscale did not immediately respond to requests for comment. Explanations circulating in secondary coverage, including grid power timing, are not carried here because the Reuters report does not establish them. This item will be updated when confirmation, a company statement, or a denial appears.

Sources: Reuters