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Microsoft Exits Three NScale Projects as Its Neocloud Stance Cools
Data center delays tied to IREN’s Texas site selection and cost issues have contributed to Microsoft’s cooler stance toward neocloud projects.

Microsoft has exited three NScale projects as its approach to neocloud developments cools. Data center delays and cost issues contributed to that shift, and the company is increasing oversight of NScale, IREN and Nebius.
Separately, data center delays are tied to IREN’s site selection in Texas.
In an earlier U.K. project, Microsoft withdrew from a planned anchor customer role at NScale’s Loughton AI data center in Essex.