Microsoft declines multibillion-dollar Texas data center expansion with Nscale
Microsoft has turned down an option to more than double its data center capacity with UK-based AI cloud provider Nscale in Texas, passing on a potential deal worth tens of billions of dollars.
Microsoft has decided against exercising an option to more than double its Texas data center agreement with UK-based cloud startup Nscale, according to reports from the Financial Times and Bloomberg. The rejected expansion would have added hundreds of megawatts of capacity at Nscale's facility in Ward County, Texas, in a multibillion-dollar transaction reportedly valued in the tens of billions of dollars.[1][2][3][4][5]
Bloomberg reported that Microsoft opted out because the Ward County project was still waiting on approval for an electrical power connection. The decision follows Microsoft pulling out of a separate UK data center arrangement with Nscale last month, dealing another setback to Nscale as it pursues plans for a $35 billion initial public offering.[1][2][5]
Despite walking away from the expansion, Microsoft's existing data center contract with Nscale remains intact. Nscale is also exploring an alternative opportunity with AI developer Anthropic reportedly worth $45 billion.[3]
Key facts
- Microsoft rejected an option to more than double its Texas data center contract with UK cloud startup Nscale, according to the Financial Times.
- The declined option would have added hundreds of megawatts of capacity at Nscale's Ward County, Texas site and was valued in the tens of billions of dollars.
- Bloomberg reported that Microsoft passed on the expansion because the project was still awaiting power connection approval.
- The decision delivers a fresh blow to Nscale's ambitions for a $35 billion IPO, coming shortly after Microsoft exited a UK data center deal with the startup.
- Nscale's existing contract with Microsoft remains intact, and the startup is exploring a reported $45 billion opportunity with Anthropic.
Sources · 5 sources
- EV
Evan@StockMKTNewzPost on X ·
MICROSOFT $MSFT HAS PASSED ON EXTRA DATA CENTER CAPACITY FROM AI CLOUD STARTUP NSCALE IN TEXAS Microsoft had an option to add hundreds of megawatts at Nscale's Ward County site, but decided not to move forward because the project was still waiting on approval for a power connection, per Bloomberg. Microsoft also pulled out of a UK data center deal with Nscale last month.
Open source - TE
Techmeme@TechmemePost on X ·
Sources: Microsoft rejects an option to more than double its Texas data center contract with Nscale, dealing a fresh blow to Nscale's ambitions for a $35B IPO (Financial Times) (Visit Techmeme dot com for the link and full context!)
Open source - AI
Analytics Insight@analyticsinmePost on X ·
𝐌𝐢𝐜𝐫𝐨𝐬𝐨𝐟𝐭 𝐑𝐞𝐣𝐞𝐜𝐭𝐬 𝐌𝐮𝐥𝐭𝐢𝐛𝐢𝐥𝐥𝐢𝐨𝐧-𝐃𝐨𝐥𝐥𝐚𝐫 𝐀𝐈 𝐃𝐞𝐚𝐥 𝐰𝐢𝐭𝐡 𝐔𝐊’𝐬 𝐍𝐬𝐜𝐚𝐥𝐞: 𝐑𝐞𝐩𝐨𝐫𝐭 A multibillion-dollar AI deal has hit a roadblock! Microsoft has reportedly walked away from expanding its Texas data center agreement with UK-based Nscale, turning down a potential deal worth tens of billions of dollars. But there’s a twist: Nscale’s existing contract remains intact, and the company is exploring a reported $45 billion opportunity with Anthropic. Here’s what happened! #Microsoft #Nscale #AI #ArtificialIntelligence #DataCentres #Anthropic #TechNews #analyticsinsight #analyticsinsightmagazine Read More 👇 https://t.co/6JBJ9Zy1gR
Open source - FT
Financial Times@FTPost on X ·
Microsoft rejects multibillion-dollar AI deal with UK’s Nscale https://t.co/ZLJM4g7i5Z
Open source - TE
TechmemeArticle ·
Sources: Microsoft rejects an option to more than double its Texas data center contract with Nscale, dealing a fresh blow to Nscale's ambitions for a $35B IPO (Financial Times) Financial Times : Sources: Microsoft rejects an option to more than double its Texas data center contract with Nscale, dealing a fresh blow to Nscale's ambitions for a $35B IPO — Fresh blow ahead of start-up's IPO as tech giant turns down option to more than double Texas data centre contract
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