Microsoft rejects option to more than double Nscale's Texas AI data center contract

Microsoft has declined an option to more than double its existing Texas data center contract with Nscale, in a deal that would have been worth tens of billions of dollars, per an FT report Wednesday. The rejection follows Microsoft's earlier withdrawal from Nscale's Essex anchor project over power-connection delays, and comes as Nscale pursues a reported $35B US IPO with roughly $45B of Anthropic commitments on the books.