Nvidia-backed Nscale's UK 'largest AI supercomputer' faces years of delay due to insufficient power grid capacity to support its data centers.

Neocloud, a data center project backed by Nvidia and set to open in 2027, is facing delays of several years due to insufficient electricity supply. UK Power Networks has informed Nscale, the UK startup building the facility, that the electrical grid cannot deliver the required power until the early 2030s. The project, located in Loughton, Essex, was previously cited by UK Prime Minister Keir Starmer as a centerpiece of the nation's AI strategy.

The Nscale neocloud requires 90MW of power—equivalent to the energy consumption of approximately 315,000 homes. This demand reflects the facility's scale: it is positioned as the UK's largest AI supercomputer and represents Nscale's inaugural infrastructure project. The company is preparing for a £26 billion ($35 billion) public listing and has raised approximately £2.55 billion ($3.36 billion) in pre-IPO funding. Notably, the site itself remained operational as a scaffolding yard as recently as March 2026, despite its intended role in the UK's AI infrastructure.

The power shortfall facing Nscale is symptomatic of a broader national crisis. The UK National Grid has a backlog exceeding 300 data centers seeking power connections, with total demand surpassing current capacity by more than 60 percent. In June 2026, regulator Ofgem reported that 315 data centers were awaiting grid connection, collectively demanding 73GW—62 percent above the country's entire generation capacity of 45GW. A National Grid representative stated: "We're continuing to work closely with Neso, distribution network operators and customers to identify opportunities to accelerate connections where possible and support economic growth."

The UK's power generation portfolio comprises gas, nuclear, wind, solar, and biomass, supplemented by imports from mainland Europe. Over the past 25 years, the nation has prioritized renewable energy expansion while deprioritizing nuclear investment and relying on gas as backup generation. The surge in data center demand driven by artificial intelligence is forcing a fundamental reconsideration of this strategy. In response, approximately 100 data centers are planning to construct their own gas-fired power stations, according to reports from earlier in the year, which noted that 100GW of data center projects await connection to the UK's power infrastructure.