Microsoft has pulled out of an agreement to be an anchor tenant for a planned UK AI data centre in Loughton, Essex, according to multiple reports. The facility is to be developed by UK firm Nscale and is described as the first planned site for the company.

The outlets differ on emphasis but broadly agree the issue involves Microsoft stepping back from the deal linked to the site’s planned power arrangements. The Guardian reports Microsoft’s decision is tied to concerns about power supplies, while the BBC says Nscale remains committed to building the data centre. The project had been announced as a major development for the UK, with ministers highlighting it as among the largest of its kind.

One outlet also reports the financial implications of Microsoft’s exit, including possible consequences for individuals associated with the venture. Overall, the withdrawal creates uncertainty around the initial commissioning plan, but construction plans appear to continue under Nscale, with the deal’s future tenant arrangements unclear.