Microsoft cancels UK deal, threatening Nscale IPO

British neocloud startup Nscale's planned US IPO faces serious risk after Microsoft terminated an AI infrastructure deal at its Loughton, Essex facility. UK grid officials said adequate power cannot be provided until the 2030s, derailing the site where Nscale had planned to install 23,040 Nvidia GPUs. The cancellation is damaging because Microsoft and Anthropic together account for roughly 85% of Nscale's contract value. Nscale filed confidentially with the SEC last month, seeking to raise $3 billion at a $35 billion valuation. The company says its other Microsoft projects in Texas, Portugal, and Norway remain on track.