Microsoft Ends Data Center Partnership with Nscale, Dealing Blow to UK Firm's IPO Plans

According to a report by The Daily Telegraph on Oct. 18, 2026, Microsoft has terminated its data center project partnership with UK-based Nscale in Loughton, Essex. Microsoft, one of Nscale's two largest customers, exited the project for undisclosed reasons; neither company has responded to requests for comment. The report described the move as a significant setback to Nscale's multibillion-dollar listing plans.

Nscale filed for an initial public offering in the United States in September 2026. Its prospectus lists Microsoft and Anthropic as its main customers. The company provides compute, power, and data center infrastructure used to train and run AI models. Competitors include CoreWeave, Nebius, Crusoe, and Lambda. Since its founding, Nscale has grown rapidly, with total contract value rising from $100 million to more than $103 billion in just two and a half years.