Microsoft maintains £22 billion UK plan despite data centre withdrawal

Microsoft remains committed to its £22 billion UK investment plan despite withdrawing from a deal to lease computing capacity at Nscale’s proposed data centre in Loughton, Essex. The company pulled out following concerns that the site would not have access to the power grid until after 2030. The project had been planned as the UK’s largest AI data centre.

Darren Hardman, chief executive of Microsoft UK and Ireland, said the investment package, intended to expand Britain’s AI infrastructure between 2025 and 2028, “will not change”. He described the Essex project as a small component of the overall commitment and said Microsoft remained committed to its relationship with Nscale, with plans to work together at sites outside the UK.

Separately, Microsoft research showed that 43.7% of Britons used AI in the second quarter of 2026, compared with 36.6% a year earlier. The UK remained behind the United Arab Emirates and Singapore, which recorded AI diffusion rates of 73.3% and 64.3% respectively. Hardman highlighted Manchester as an example of growing adoption supporting economic prospects.