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Microsoft has withdrawn from a UK data center deal with Nscale, according to the Telegraph, as reported by Reuters. Coverage also links the withdrawal to concerns ahead of Nscale's planned IPO.

A major hyperscaler exit from a named UK AI capacity deal raises questions about Nscale's pipeline and financing and about the near-term UK AI data center buildout.
NewswireSlicast · October 18, 2026 at 17:19 UTC · US · Source: Reuters
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Microsoft has withdrawn from a UK data center… · Slicast