Development by UK firm Nscale heralded by ministers as largest of its kind in the country loses its anchor tenant

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 firm 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.