Microsoft pulls out of UK's largest AI data centre

A tech company has said it still plans to build the UK's largest AI data centre despite Microsoft pulling out of the project.

Nscale announced last year it had pledged £2bn to build and open a pioneering facility in Loughton, Essex.

However, the BBC understands that Microsoft, which said it would fund a supercomputer at the site, has terminated its involvement.

A spokesperson for Nscale said it was exploring alternative power sources and its relationship with Microsoft remained strong for their other projects together overseas. Microsoft declined to comment.

"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," Nscale said.

"Our relationship with Microsoft remains strong and long-term."