The development of a huge AI datacentre hailed by the UK government has received a fresh setback after Microsoft pulled out of the project over concerns about power supplies. The development by the British company Nscale, heralded by ministers as the country's largest AI datacentre when it was announced in 2025, was planned to open at Loughton in Essex next year. Revealed: UK's multibillion AI drive is built on'phantom investments' Doubts had already emerged about the scheme after the Guardian revealed in March that the location was still an operational scaffolding yard . Now there are further concerns after Microsoft, one of its largest planned customers and expected to have been the anchor tenant, informed the company that it was pulling the plug on its agreement. It comes a month after it emerged that power supply problems meant the project would face a lengthy wait before coming online.

It generally takes 18 to 36 months to build a hyperscale AI site - such as, presumably, one of the world's most powerful supercomputers. It generally takes 18 to 36 months to build a hyperscale AI site - such as, presumably, one of the world's most powerful supercomputers. From press release to scrap metal site: the Essex'supercomputer' that's still a scaffolding yard Nscale's AI project still in use as depot ahead of pledged completion date - with planning permission filed after Guardian's inquiries Revealed: UK's multibillion AI drive is built on'phantom investments' T he press releases announcing a gleaming supercomputer on the outskirts of north London depict a glass and concrete building, rising from a tree-lined street. Accompanied by images of glowing blue robot faces, it looks like the centre of a technological revolution. By the end of this year, that artist's impression is supposed to be a reality.

Microsoft and Nvidia unveiled plans to invest up to $45 billion in the UK during US President Donald Trump's state visit. Microsoft and Nvidia have unveiled plans to invest up to $45 billion dollars into the UK economy, in a move that will bolster the building of more data centers as well as research and development into artificial intelligence . The investment comes as US president Donald Trump travels to Britain, where he is expected to announce a US-UK tech deal alongside UK prime minister Keir Starmer. As part of the agreement, Microsoft has committed to invest $30 billion in AI infrastructure over the next four years. The company claims this is the largest financial commitment it has ever made in the UK and will make up more than two thirds of the total investment announced into the UK this week, timed to Trump's visit.