AI Matters
Why it matters
Microsoft pulls out of large UK AI data center over power supply
The Guardian AI Microsoft pulls out of AI datacentre project in Essex over power supply concerns
Microsoft withdrew as anchor tenant from Nscale's Essex AI data center, which UK ministers had promoted as the country's largest, citing power supply concerns.
Why it matters
Power shortages can slow the AI infrastructure behind new services and delay the investment and jobs governments have promised.
Latest brief · Oct 19, 2026