Nscale IPO valuation pressured; Microsoft exits UK data center project
10/19/2026 — 10/19, 08:19·3 sources (all)·3 reports (all)·In the 2026-10-19 briefing
Key takeaways
- AI data center developer Nscale is seeking a roughly $30 billion IPO valuation, but some investors argue $16 billion to $19 billion would be…
Background & analysis
In 2025, UK company Nscale announced an AI data centre project at Loughton in Essex, which government ministers described as the largest of its kind in the country. The site was planned to open the following year, but the project had already faced long delays over power supply issues. On 18 October 2026, The Guardian reported that Microsoft had told Nscale it was withdrawing from the project and would no longer serve as its anchor tenant, citing concerns about power supplies.
The next day, Bloomberg reported, citing people familiar with the matter, that Nscale was seeking a valuation of about $30 billion in its IPO and had met opposition from investors, some of whom argued for a lower range of $16 billion to $19 billion. IT之家 relayed the same figures, saying some investors believed the lower range would be easier to place, and pointed to factors including the failed IPO plan of Australian AI data centre company Firmus. The report also said Nscale is backed by Nvidia.
Nscale said on Sunday that Microsoft, both an investor and a customer, had exited a UK data centre project with the company, and that the site had faced continuing delays because of limited power supply. The valuation dispute and Microsoft's withdrawal are now both outstanding, and no new IPO pricing outcome has been reported. The reports do not specify the cause of the power constraints or the financial impact of either development.
AI-generated from 3 reports · updated 57 minutes ago
Latest turnBloomberg reports that Nscale, an Nvidia-backed AI data center developer, is targeting a roughly $30 billion IPO valuation, while some investors say $16 billion to $19 billion would be easier to sell. Nscale said Sunday that Microsoft, both an investor and a customer, exited a UK data center project with the company that had been delayed by power constraints.
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Bloomberg reports that Nscale, an Nvidia-backed AI data center developer, is targeting a roughly $30 billion IPO valuation, while some investors say $16 billion to $19 billion would be easier to sell. Nscale said Sunday that Microsoft, both an investor and a customer, exited a UK data center project with the company that had been delayed by power constraints.
IT之家AI score 60Nscale is meeting investor resistance to the roughly $30B valuation it is targeting in its IPO, with some pushing for $16B to $19B, according to Bloomberg, which cited people familiar with the matter. Microsoft has also exited a UK data center deal involving the company.
TechmemeAI score 56
Microsoft has told UK firm Nscale it is pulling out of its AI datacentre project in Loughton, Essex, giving up its role as anchor tenant, The Guardian reports. The site was billed by ministers as the country's largest AI datacentre and had already faced a lengthy delay over power supply.
The Guardian · AIAI score 62
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