Neocloud operator Nscale’s IPO plans could be at risk after Microsoft cancels UK data center project

British neocloud startup Nscale Global Holdings Ltd.’s plans to launch an initial public offering in the U.S. have suffered a massive setback after its biggest customer Microsoft Corp. pulled out of a critical data center deal this weekend. A report in The Telegraph today said Microsoft has terminated an agreement to rent artificial intelligence infrastructure at the company’s planned facility in Loughton, Essex. The project, which had already been beset by repeated construction delays, has effectively been derailed after U.K. grid officials told Nscale they would not be able to provide adequate power to the site until the 2030s. The cancellation of the deal comes at…