Deals·October 18, 2026 at 4:31 AM EDT·5 sources
Microsoft Scraps UK Data Center Deal With Nscale, Telegraph Says
MSFT +0.7%
MSFT · last 30 trading days-0.9% since the news
News
What happened
- Microsoft pulled out of a planned agreement to lease capacity at Nscale’s UK data center, according to multiple reports.
- Nscale said delays accessing power had affected efforts to bring the site online.
- The cancellation comes as Nscale prepares for a planned public offering this month.
Why it matters
The withdrawal removes a reported customer commitment for Nscale as it seeks to access public markets. It also highlights power-supply and execution risks in AI data-center infrastructure.
What to watch. Nscale’s planned public offering this month.
Deal terms
stake
Microsoft Corp. → Nscale
Value
—
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Timeline
- First reported by BloombergOct 18Microsoft Scraps UK Data Center Deal With Nscale, Telegraph Says
- Financial Times reportsOct 18Microsoft pulls plug on Nscale data centre deal
- The Information reportsOct 18Microsoft Pulls Out of Nscale U.K. Data Center Following Delays
- The Wall Street Journal reportsOct 19Microsoft Pulls out of Nscale U.K. Data-Center Deal Over Power-Supply Issues
- Light Reading reportsOct 19Eurobites: Microsoft unplugs from Nscale data center project in UK
Who is involved
stake inMicrosoft Scraps UK Data Center Deal With Nscale, Telegraph SaysNscaletargetMicrosoft Corp.MSFT · buyer
CompanyThe deal
Sources (5)
- BloombergOct 18Microsoft Scraps UK Data Center Deal With Nscale, Telegraph Says
- Financial TimesOct 18Microsoft pulls plug on Nscale data centre deal
- The InformationOct 18Microsoft Pulls Out of Nscale U.K. Data Center Following Delays
- The Wall Street JournalOct 19Microsoft Pulls out of Nscale U.K. Data-Center Deal Over Power-Supply Issues
- Light ReadingOct 19Eurobites: Microsoft unplugs from Nscale data center project in UK
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