Microsoft will no longer be part of a multibillion-dollar data center in Loughton, Essex, England, according to a report by The Telegraph. The planned data center is set to have thousands of NVIDIA processors and was originally planned to start operating next year. Now, major questions surround the project's future.

The data center, which is being planned by Nscale, will be part of a wave of data centers opening in the UK, assuming plans come to fruition.

Microsoft's recent decision could affect the future of the data center, but the power grid is another pressing concern. Nscale has been told by grid operators that the required power supply for the data center will not be available until 2030.

The problems could be connected. The Guardian reports that Microsoft withdrew from the project because of the power grid concerns.

Microsoft was the only company that had publicly committed to plans to use the data center. It's unclear if other tech giants will step in to fill the void.

Despite Microsoft's reported cancellation of plans to be involved with the Essex data center, Microsoft and Nscale continue to have a professional relationship. The Telegraph reports that over 40 percent of Nscale's $103 billion in contracted revenue comes from Microsoft. The Essex data center was only believed to be a small part of that even before Microsoft changed its plans.

"We remain committed to both the Loughton project and the UK and we are exploring alternative power sources for the site, in addition to other expansion sites in the UK," said Nscale.

Source link