Nscale Hit by Another Blow Ahead of IPO: Microsoft Exits Data Center Partnership

Odaily: Microsoft (MSFT.O) has withdrawn from a data center partnership project with UK emerging cloud service provider Nscale in Loughton, Essex, UK. The move comes at a critical time as Nscale prepares for its IPO, adding further uncertainty to the startup's listing plans. Reports indicate that Microsoft did not specify the reason for terminating the partnership, but the project had been facing a series of delays. Local authorities have informed Nscale that power supply for the facility is not expected to be available until the 2030s.

Additionally, Nscale's flagship project in Norway is approximately six months behind schedule, with only 6.4 megawatts of its planned 30-megawatt data center capacity currently operational. According to Nscale's IPO filing, approximately 85% of the company's contracts depend on Microsoft and Anthropic. Microsoft had originally planned to become the primary tenant of Nscale's first UK data center in Essex. Microsoft's withdrawal will deal a blow to Nscale. The company is seeking to raise up to $3 billion through its IPO, with a listing potentially as early as this month. (The Daily Telegraph)