Microsoft has rejected an option to more than double its existing agreement with Nscale to rent computing power at a Texas data center, the Financial Times reported on Thursday, citing people familiar with the matter. The decision ends a potential expansion valued at tens of billions of dollars, according to the newspaper.
The report follows Microsoft’s withdrawal from a separate deal to anchor Nscale’s flagship data center project in Loughton, Essex. The expected power connection for that project had been delayed, pushing its anticipated supply date into the 2030s.
Reuters said it could not immediately verify the Financial Times report. Microsoft and Nscale did not immediately respond to requests for comment outside business hours.
Nscale, which is backed by Nvidia, filed for a U.S. initial public offering in September. Microsoft and Anthropic were expected to be among its major customers. Reuters also reported last month that Nscale was in talks to supply AI computing capacity to Anthropic in a separate deal that could be worth about $45 billion.
Sources: Investing.com News.