Microsoft Pulls Out of UK Data Center Deal With Nscale, Telegraph Reports

3-line summary

• Microsoft recently terminated its agreement with UK cloud provider Nscale related to a data center in Loughton, Essex, the Telegraph reported Sunday; Microsoft was one of Nscale's two biggest customers. The report did not specify the deal's value or the reason for termination, and neither company immediately responded to Reuters' request for comment.
• Nscale, backed by Nvidia, filed for a US IPO last month; per its prospectus, Microsoft and Anthropic are expected to be its major customers. The company competes with CoreWeave, Nebius, Crusoe, and Lambda, and its total contracted value reportedly grew from $100 million to more than $103 billion over about two and a half years.
• The report did not tie the termination to broader concerns about AI-infrastructure spending sustainability.

This summary is our own processing of the source article; see the source link below for full context.