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Microsoft pulls out of major UK datacenter deal with Nscale

Original: Another domino falls. Microsoft just pulled out of a massive datacenter deal with Nscale in the UK, taking out up to 40%

Microsoft has withdrawn from a large datacenter agreement with UK-based cloud provider Nscale, a move that could strip away up to 40% of Nscale's potential contractual income. The withdrawal comes shortly before Nscale's planned IPO, raising questions about the timing and the company's financial outlook. The report notes the value of the UK contract was not disclosed, and Microsoft's full reasons remain unclear.

Why now: The timing, right before Nscale's IPO and amid broader doubts about AI datacenter expansion, makes the pullout a talking point.

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• Another domino falls. Microsoft just pulled out of a massive datacenter deal with Nscale in the UK, taking out up to 40% of Nscale’s potential contractual income (the article doesn’t state how much the UK contract was worth)…just in time for Nscale’s IPO. Microsoft’s reason for… · drahardja@sfba.social · 11

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