Technology behemoth Microsoft has pulled the plug on a data center agreement in Essex with UK-based data center provider Nscale. Nscale, which has secured investments from NVIDIA and other entities, markets itself as a 'sovereign' data center supplier in the UK, with Microsoft being one of its two primary clients. Initially, Microsoft was set to be the key tenant for the data center. However, the project has encountered numerous setbacks due to power grid complications, leading Microsoft to announce the termination of the contract. The data center, initially slated to become operational next year, is now in limbo. Microsoft's move deals a significant setback to Nscale, jeopardizing its ambitions to move forward with a Wall Street listing, given that its IPO valuation had previously soared as high as $35 billion. An Nscale spokesperson mentioned that they will explore alternative power solutions to push forward with the project and solidify their footprint in the UK market, underscoring that their collaboration with Microsoft remains unshaken.