# Nscale IPO at risk after Microsoft cancels UK data center

> Microsoft pulls UK data center deal, threatening Nscale's $35bn IPO.
- Title: Nscale IPO at risk after Microsoft cancels UK data center
- Summary: Microsoft pulls UK data center deal, threatening Nscale's $35bn IPO. Nscale's US IPO plans face uncertainty after Microsoft canceled a UK data center project…
- Keywords: nscale, microsoft, uk data center, ipo, ai infrastructure, neocloud, nvidia, securities and exchange commission, new york stock exchange, 23040 nvidia gpus, 50 megawatts, 90 megawatts
- Source: SiliconANGLE — https://siliconangle.com/2026/10/18/neocloud-operator-nscales-ipo-plans-could-be-at-risk-after-microsoft-pulls-the-plug-on-u-k-data-center-project
- Author: Mike Wheatley
- Published: 2026-10-19T00:57:31+00:00
- Read time: 1 min
- Topics: nscale, microsoft, uk data center, ipo, ai infrastructure, neocloud, nvidia, securities and exchange commission, new york stock exchange, 23040 nvidia gpus, 50 megawatts, 90 megawatts
## Microsoft cancels UK data center project
Microsoft terminated an agreement to rent AI infrastructure at Nscale's Loughton, Essex facility.

> Microsoft has terminated an agreement to rent artificial intelligence infrastructure at the company’s planned facility in Loughton, Essex
## Power shortage delays UK facility
UK grid officials said power would not be available until the 2030s for the Loughton site.

> U.K. grid officials told Nscale they would not be able to provide adequate power to the site until the 2030s
## Nscale's Norway facility faces issues
Nscale's Norway site has cooling leaks, regulatory hurdles and a fire.

> That site has reportedly struggled with cooling system leaks, regulatory hurdles and a fire
## Nscale's relationship with Microsoft remains strong
Nscale claims Microsoft relationship is 'strong and long-term' despite UK project issues.

> A spokesperson for Nscale told The Telegraph that the company’s relationship with Microsoft remains 'strong and long-term'
## Nscale's IPO plans in jeopardy
Nscale's US IPO application under NSCL ticker faces skepticism after UK project cancellation.

> Nscale’s plans to launch an initial public offering in the U.S. have suffered a massive setback after its biggest customer Microsoft Corp. pulled out of a critical data center deal
## Microsoft accounts for 85% of Nscale's contracts
Microsoft and Anthropic PBC make up 85% of Nscale's total contract value.

> Microsoft and Anthropic PBC account for approximately 85% of Nscale’s entire contract value
## Nscale's AI capacity plans
Nscale planned 23,040 Nvidia GPUs for 50 megawatts of AI capacity by Q1 2027.

> Nscale originally announced plans to install 23,040 Nvidia graphics processing units at the site by the first quarter of 2027
## Investor confidence in neoclouds declining
CoreWeave's stock fell 25% last week as AI infrastructure financing becomes harder.

> CoreWeave’s stock fell more than 25% last week on concerns about its financing needs
## Key takeaway

Nscale's US IPO plans face uncertainty after Microsoft canceled a UK data center project due to power shortages.