Brief

Microsoft UK chief says £22bn AI investment remains on track after Loughton data‑centre pull‑out

The company will keep its 2025‑2028 AI infrastructure programme despite abandoning a lease for the proposed Loughton AI data centre.

By Felo News Desk · Published Wed, 21 Oct 2026 00:27:55 GMT

Microsoft’s UK chief executive Darren Hardman told the Press Association that the firm’s £22 billion AI investment plan will not be altered, even though it has withdrawn from a lease agreement for the proposed AI data centre in Loughton, Essex.

What happened

Last year Microsoft announced a £22 billion (US$30 billion) investment to expand AI infrastructure in Britain between 2025 and 2028. Part of that plan involved supporting start‑up Nscale’s AI data‑centre project in Loughton, Essex. Earlier this week the company confirmed it had pulled out of the lease after learning the site would not be connected to the power grid until after 2030.

What the reports add

Both the Independent and the Evening Standard reported the withdrawal and quoted Hardman’s comments. The Independent noted the decision was driven by “concerns that the site will not have access to the power grid until after 2030,” while the Standard repeated the same reason without additional detail. No other outlets provided differing explanations.

What was said

Darren Hardman, chief executive of Microsoft UK and Ireland, told the Press Association: “When you look at the 30 billion dollar investment between 2025 and 2028, it is a small component of that. We are still fully committed to that investment package.” Both sources attribute the quote to Hardman and the Press Association.

How it came about

Microsoft’s broader AI investment follows a series of data‑centre related developments in the UK. Earlier coverage by Felo News highlighted community backlash to AI data‑centre projects (AI Data Centre Backlash) and environmental concerns surrounding new facilities (Khazna carbon‑free cooling). The Loughton withdrawal adds to a pattern of scrutiny over power‑grid readiness and environmental impact for large‑scale AI infrastructure.

Key facts

Microsoft announced a £22 billion AI investment plan for the UK covering 2025‑2028. (independent.co.uk)
The company withdrew from a lease for the proposed Loughton AI data centre due to power‑grid timing concerns. (independent.co.uk)
Darren Hardman said the overall investment plan will not change despite the withdrawal. (independent.co.uk)