October 19, 2026
AI data center power limits: the Nscale pullout, next to Meta and Microsoft's July calls
AI data center power limits: Microsoft exits Nscale's Essex site over power into the 2030s. What Meta and Microsoft said on their July calls.
Meta's CFO Susan Li said the company is supply constrained and would put more compute toward ROI-positive places if it had it (Tellvest score 7). Microsoft just lost a planned UK data center to the grid. Power is the friction, not soft demand.
Power, not demand, is slowing AI buildouts. AI data center power limits showed up in public when Microsoft walked off Nscale's UK site, and the useful move is to put that news next to what Meta and Microsoft said on their July calls, then listen for power and capacity language when they report again. For the wider supply chain across hyperscalers and power companies, see AI capex on earnings calls.
Why AI data center power limits showed up in one deal
The Guardian, BBC, and IT Pro report that Microsoft pulled out as planned anchor tenant at Nscale's Loughton, Essex AI data center over power-supply concerns. The grid may not deliver enough power until the early to mid-2030s. About 23,000 Nvidia chips were in the deal plan.
A cancelled AI site can look like fading demand, but on the July calls Meta and Microsoft still talked about wanting more capacity than they could get. Power is what blocked this site.
What Microsoft said in July
Microsoft's FY2026 Q4 call on July 29 scored 8 on Tellvest. Satya Nadella said: "All up, we added another gigawatt of capacity this quarter and remain on track to roughly double our overall capacity in just two years."
That line is a build plan. The Essex site failed on grid timing, not on whether customers wanted the capacity.
What Meta said in July
Meta's FY2026 Q2 call, also on July 29, scored 7 on Tellvest. CFO Susan Li said Meta is supply constrained, including in the core business, and that there are still numerous ROI-positive places it would put compute toward if it had it. Meta wants more compute than it has.
Putting them next to Nscale
One UK deal died on power while Meta still has ROI-positive work waiting on more supply and Microsoft's July plan was still to add capacity fast. The news and the call lines can sit side by side.
What to listen for next
Meta reports on October 21. Microsoft reports on October 28. Dates are the ones shown on each company page and can move.
Listen for power, interconnection, and capacity timing. The July words still have Meta using more compute if it had it, and Microsoft adding capacity on a two-year doubling plan, so the Nscale pullout does not turn those lines into a demand collapse.
Browse utilities and independent power generators for the power-company side. The AI capex article covers the cross-company chain.
How to follow it yourself
- Open the Microsoft company page and the Meta company page. Prior quarters are free. The newest quarter is part of Pro.
- Read the July capacity and supply lines in management's own words, then compare them to the October calls.
- For the quarter-wide view, open the Earnings Pulse.
Related: Blog, Utilities, Independent Power Generators.