Nscale IPO at Risk as Microsoft Exits Delayed UK Data Centre

Microsoft has withdrawn as the expected anchor customer for Nscale’s Loughton AI data centre in Essex, adding uncertainty to Nscale’s planned IPO. Grid delays mean reliable power may not be available until the early-to-mid 2030s. The planned site was designed for about 23,040 Nvidia GPUs, with 50 megawatts of computing capacity and scope to expand to 90 megawatts. Nscale says it remains committed and is exploring alternative power supplies; Microsoft says its wider partnership with Nscale continues on other projects. The setback compounds execution concerns at Nscale’s Norway data centre, which is about six months behind schedule: 6.4 megawatts of its planned 30 megawatts are operating. Earlier filings showed around 85% of Nscale’s contracts depend on Microsoft and Anthropic, underscoring customer-concentration risk. Nscale is seeking up to $3 billion through a planned IPO, with reported valuation ambitions of as much as $35 billion. It reported $140.6 million in first-half 2026 revenue and a net loss of about $1.02 billion. Its filings cite more than $103 billion in active and contracted total contract value, but that reflects multiyear commitments rather than revenue already received. For investors, the Nscale developments highlight how power access, construction delays and heavy financing needs could prevent AI data-centre firms from converting contracts into near-term revenue. The scrutiny also extends to Nvidia-backed CoreWeave.