Microsoft has withdrawn from an agreement to use a planned £2 billion ($2.6 billion) artificial intelligence data centre in Loughton, Essex, dealing a setback to the UK's ambitions to expand its domestic AI computing capacity. The facility, developed by British infrastructure company Nscale, was presented by ministers as a major part of the country's plans to build sovereign AI infrastructure.
The project has faced repeated delays because of electricity supply constraints. UK Power Networks reportedly told Nscale that sufficient power would not be available until the early to mid-2030s, despite the facility having been scheduled to open in 2027.
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