MICROSOFT REAFFIRMS £22BN UK INVESTMENT AFTER ESSEX DATA CENTRE EXIT

Microsoft says its $30bn (£22bn) UK investment plan remains on track after it withdrew from a deal linked to a proposed AI data centre in Loughton, Essex. The company had planned to lease computing capacity from the site, which UK start-up Nscale is developing. Microsoft cited concerns that the site would not connect to the power grid until after 2030. Darren Hardman, chief executive of Microsoft UK and Ireland, said the investment plan “will not change”.

Microsoft announced the 2025–28 plan last year to help expand Britain’s AI infrastructure. Hardman said the Loughton deal was “a small component” of the wider investment. He said Microsoft remained committed to its relationship with Nscale and planned to work with the company at several sites outside the UK. The proposed Loughton site has been described as Britain’s largest AI data centre.

Hardman said he had discussed AI opportunities with Prime Minister Andy Burnham since Burnham’s appointment this summer. He cited Manchester as an area where growing AI use could support economic growth. Microsoft’s research estimated that 43.7% of Britons used AI in the second quarter of 2026, up from 36.6% a year earlier. On Microsoft’s measure, the UK ranked eighth worldwide and second among G7 countries for generative AI uptake. The company put adoption in the United Arab Emirates at 73.3% and Singapore at 64.3%.