On October 18th, The Daily Telegraph reported that Microsoft has opted to pull out of a data center joint venture with UK-based cloud service provider Nscale, located in Loughton, Essex. This move comes at a pivotal moment, as Nscale is in the midst of preparing for its Initial Public Offering (IPO), inevitably introducing an element of unpredictability into its listing strategy. Microsoft has refrained from specifying the exact rationale behind its decision to terminate the partnership, though the project had already encountered several setbacks. The local authorities have communicated to Nscale that the data center is not anticipated to receive electrical power until the 2030s. Furthermore, Nscale's flagship endeavor in Norway is also running approximately six months behind the projected timeline, with merely 6.4 megawatts of the planned 30-megawatt capacity currently in operation. As outlined in Nscale's IPO documentation, roughly 85% of the company's contractual commitments are contingent upon Microsoft and Anthropic. Initially, Microsoft had intended to assume the role of the principal tenant at Nscale's inaugural UK data center in Essex, and its withdrawal is poised to inflict a substantial setback on Nscale. Nscale is aiming to secure up to $3 billion through its IPO and may proceed with the public offering as early as this month.