Nvidia-backed Neocloud Nscale faces years of delay because UK's 'largest AI supercomputer' can't get enough power from the grid to feed its data centers

An upcoming data center cited by previous Prime Minister Keir Starmer as part of the UK’s AI Strategy will no longer open as planned The Nscale site in Loughton, Essex, which counts Nvidia among its investors, had already raised eyebrows when it was revealed earlier this year to still be in operatio

<![CDATA[ <article> <ul><li><strong>An upcoming data center cited by previous Prime Minister Keir Starmer as part of the UK’s AI Strategy will no longer open as planned</strong></li><li><strong>The Nscale site in Loughton, Essex, which counts Nvidia among its investors, had already raised eyebrows when it was revealed earlier this year to still be in operation as a scaffolding yard</strong></li><li><strong>UK Power Networks has told Nscale that the electricity grid will not be able to produce enough power for the site until the early 2030s</strong></li></ul><p>A new AI data center – dubbed the UK’s largest AI supercomputer – is facing delays thanks to challenges supplying power to the facility. Built by Nscale, with backers including Nvidia, the neocloud installation was set to launch in 2027, but power issues have forced UK Power Networks to come clean over the data center’s intended viability.</p><p>Oddly, the site – which was highlighted by the UK’s recently replaced Prime Minister, Keir Starmer – was still operating as a scaffolding yard as recently as March 2026.</p><p>In order to operate, the Loughton data center in Essex, England, requires 90MW, around the same energy requirement as 315,000 homes. However, the UK’s National Grid has a backlog of over 300 data centers requiring power, with the total demand more than 60% greater than the UK’s current capacity.</p><h2 id="the-nscale-neocloud">The Nscale neocloud</h2><p>Constructing the neocloud – a GPU-based AI cloud data center – is the first project for Nscale, a UK startup that is preparing for a £26 billion ($35 billion) public listing and has already <a href="https://www.datacenterdynamics.com/en/news/ai-cloud-and-data-center-firm-nscale-raises-336bn-ahead-of-its-ipo/" target="_blank">raised</a> around £2.55 billion ($3.36 billion) in pre-IPO funding.</p><p>However, while cited as a key example of the UK’s commitment to AI, the Nscale neocloud cannot operate without the 90MW supply. </p><p>National Grid, the company that owns networks in the UK, don’t comment on individual cases. Its representative <a href="https://www.theguardian.com/technology/2026/sep/24/construction-largest-supercomputer-delayed" target="_blank">told</a> the Guardian: “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.”</p><p>But the power supply roadblocks materializing for the Loughton data center are not exclusive to that project. </p><h2 id="uk-power-capacity-concerns">UK power capacity concerns</h2><p>Other data center plans around the UK are being held up by power supply problems. Regulator Ofgem revealed in June 2026 that 315 data centers were awaiting connection to the National Grid. They represent a demand of 73GW, exceeding the country’s entire capacity of 45GW by 62%.</p><p>The UK’s power generation is a diverse mix of gas, nuclear, wind, solar, and biomass. Some power comes from mainland Europe. Over the past 25 years, the UK has focused more on renewable energy resources, deprioritising nuclear, and using gas as the fall-back. However, the increasing demand for AI has revealed that strategy requires an urgent rethink.</p><p>Around 100 data centers are planning to build their own gas-fired power stations, according to <a href="https://www.theguardian.com/business/2026/may/18/uk-datacentres-plan-to-burn-gas-to-generate-electricity" target="_blank">reports</a> earlier this year, which noted that 100GW of data center projects were awaiting connection to the UK’s power infrastructure.</p> </article> ]]>