Microsoft has withdrawn from a data center agreement with British cloud provider Nscale, according to a report published Sunday. The U.S. technology company, which was one of Nscale’s two largest clients, recently terminated its contract related to a data center project in Loughton, England.

Details regarding Microsoft's decision to pull out were not disclosed. Microsoft declined to comment when approached for further information. Nscale has reportedly encountered ongoing delays in the project’s development. Officials from the national power grid have informed Nscale that a reliable power supply for the data center site is unlikely to be available before the 2030s, complicating the company’s expansion plans.

The delayed power infrastructure and uncertainty surrounding the project’s timeline may have contributed to Microsoft’s withdrawal, though neither party has publicly confirmed the exact reasons. The Loughton data center was intended to support growing demand for cloud services, underscoring the challenges data providers face amid evolving infrastructure constraints in the United Kingdom.

Nscale had aimed to expand its footprint within the British cloud computing market with the new facility, but the setbacks highlighted by power grid officials have cast doubt on the project’s near-term viability. The company has not issued an official response regarding Microsoft’s exit or the future of the Loughton data center.

The incident reflects broader challenges within the data center industry, where access to stable, high-capacity energy remains critical to operations. As demand for cloud services continues to grow, companies depend heavily on infrastructure readiness, particularly concerning power availability, to meet client requirements and operational schedules.