IT Home, October 18 — According to The Daily Telegraph today, Microsoft has canceled a cooperation agreement with UK-based data center company Nscale, dealing a major setback to Nscale’s billion-dollar IPO plan.
Microsoft, one of Nscale's two largest customers, recently terminated the data center project in Loughton, Essex, UK.
However, the report did not specify the reason for Microsoft's withdrawal from the project. Microsoft and Nscale have not yet responded to requests for comment.
IT Home noticed that Nscale submitted its IPO (initial public offering) filing documents in the United States last month. According to the prospectus, Microsoft and Anthropic are Nscale’s key customers. The company provides infrastructure such as computing resources, power, and data centers for training and running AI models.
In addition, the company’s competitors include CoreWeave, Nebius, Crusoe, and Lambda. Since its founding, Nscale has grown rapidly, increasing its total contract value from $100 million to over $103 billion in just two and a half years.