Update: Market Chatter: Microsoft Pulls Out of UK Data Center Deal With Nscale

08:53 AM EDT, 10/20/2026 (MT Newswires) -- (Updates with Microsoft and Nscale's responses in the fourth and fifth paragraphs.) Microsoft (MSFT) has withdrawn from a data center deal in the UK with Nscale, Bloomberg News reported Sunday, citing an Nscale spokesperson. The project has been hampered by power shortage issues and construction delays, according to the report. The development could serve as a headwind for British neocloud firm Nscale's upcoming US initial public offering, Bloomberg reported. Microsoft said that the decision relates to a single site. "We remain committed to our partnership with Nscale, including work to build robust digital infrastructure and support AI growth globally," the company said in an email to MT Newswires. An Nscale spokesperson said in response to MT Newswires' inquiry that the company is "committed to both the Loughton project and the UK and we are exploring alternative power sources for the site...Our relationship with Microsoft remains strong and long-term, and this unfortunate London-wide grid issue has no impact on our other contracts." (Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)