Nscale’s Loughton AI site slips as 315 data centers queue for the grid
UK Power Networks has reportedly told the company its 90MW connection may not arrive until the early-to-mid 2030s, and Ofgem’s own figures show why: the demand queue is almost three times Britain’s peak load
- Ofgem’s 29 July 2026 consultation counts around 315 data center projects holding about 73GW of contracted capacity.
- Contracted demand in the queue rose from 41GW in November 2024 to 125GW in June 2025; peak Great Britain demand was 45GW.
- Nscale announced Loughton on 16 September 2025 with 50MW scalable to 90MW and 23,040 GB300 GPUs due in Q1 2027.
- Ofgem proposes a commitment fee of £237,500 to £712,500 per megawatt, refunded when a project is energized.
For businesses buying UK AI compute, a provider's go-live date is only as firm as its grid connection. Before committing, ask for the site's energization date and queue position, and whether the contract offers credits or exit if capacity arrives late. Capacity announced but not yet powered is likely to land later and cost more once commitment fees apply, so providers with halls already connected and headroom to spare look the safer choice for near-term projects.
“Britain’s electricity demand connections queue has more than tripled in size in less than a year, and consumers should not bear the risks created by speculative projects taking up space in the system.”Eleanor Warburton, director for energy system design and development, Ofgem
Ofgem’s July consultation on demand connections put Britain’s grid problem in one table: around 315 data center projects holding about 73GW of contracted capacity, against peak demand across Great Britain of 45GW in 2025–26. On 24 September that queue claimed a casualty, when The Guardian reported that Nscale’s Loughton site – billed by the government as the UK’s largest sovereign AI data center – will not open in 2027 as planned.
Nscale announced the campus with Microsoft in September 2025: 50MW scalable to 90MW, with 23,040 Nvidia GB300 GPUs due in Q1 2027 to serve Azure customers. The government had cited it in January 2025 when it launched the AI Opportunities Action Plan alongside a $2.5bn (£1.9bn) pledge from the company. Nscale, which raised $3.36bn (£2.54bn) in pre-IPO convertible notes on 25 September, has since cleared the site.
The delay was first reported by Morning Intelligence and picked up by The Guardian on 24 September. UK Power Networks (UKPN), the distribution operator for the site, has told Nscale the 90MW connection may not be available until the early-to-mid 2030s, the paper reported, as works on the wider transmission network come first. Nscale told the paper it was “committed to the project” and is looking at on-site generation and ways to bring the connection forward.
Where Loughton sits in the queue
At 90MW, Loughton falls into the band Ofgem calls ‘large’: 51 projects totaling 3,492MW, under 5% of the queue, while 206 extra-large and hyperscale schemes make up 93%. Ofgem’s remedy, consulted on until September, is a per-megawatt commitment fee refunded on energization plus queue milestones.
Sources
- The Guardian, “Launch of UK’s ‘largest AI supercomputer’ delayed by power supply problems”, 24 September 2026. https://www.theguardian.com/technology/2026/sep/24/construction-largest-supercomputer-delayed
- Ofgem, “Consultation: Curate – Demand Connections Reform” (proposed data centre connection reforms), 29 July 2026. https://www.ofgem.gov.uk/sites/default/files/2026-07/Proposed-data-centre-connection-reforms-curate-consultation-document.pdf
- Ofgem, “Ofgem acts to free up grid capacity by tackling speculative data centre projects”, press release, 29 July 2026. https://www.ofgem.gov.uk/press-release/ofgem-acts-free-grid-capacity-tackling-speculative-data-centre-projects
- Nscale, “Nscale announces UK AI infrastructure commitment in partnership with Microsoft, NVIDIA and OpenAI”, press release, 16 September 2025. https://www.nscale.com/press-releases/nscale-uk-ai-infrastructure-announcement
- UK government, “Prime Minister sets out blueprint to turbocharge AI”, press release, 12 January 2025. https://www.gov.uk/government/news/prime-minister-sets-out-blueprint-to-turbocharge-ai
- Morning Intelligence, “No power until 2030s for Nscale’s flagship UK data centre”, 24 September 2026. https://www.themorningintelligence.uk/nscale-data-centre-loughton-essex-delayed-2030s-power/
- Nscale, “Nscale Raises $3.36 Billion in Pre-IPO Convertible Financing”, press release, 25 September 2026. https://www.nscale.com/press-releases/pre-ipo-convertible-financing
