A highly publicised supercomputer project in Loughton, Essex, touted as a centrepiece of the UK's artificial intelligence ambitions, remains a working scaffolding yard just nine months before its pledged completion date. The Guardian’s visit found the four-acre plot stacked with pylons and scrap metal under a corrugated roof, with flatbed lorries moving poles in and out.
The project, announced by the government in 2025 as part of plans to “turbocharge” the economy, was said to be three times more powerful than the fastest US supercomputer. Nscale, a small London startup that has never built a datacentre, is the developer. The company bills itself as an “AI hyperscaler” and lists 11 datacentres on its website, all either under construction or acquired from others.
Nscale said it had signed a contract to build the supercomputer by 2026, investing $2.5bn in the UK. Microsoft later partnered with Nscale, suggesting $15bn of its $30bn UK investment was for this site. However, the Guardian understands the “contract” and “investment” are not binding commitments to the UK government or economy. The government confirmed it has no mechanism to audit the $2.5bn, which “may well include equipment and capital funding” and is “not a formal contract, rather an intention to commit capital”.
The Loughton site is emblematic of broader concerns about AI infrastructure investments worldwide. A recent report found half of global datacentre projects due online this year may face delays. In the US, OpenAI’s $500bn Stargate project has been significantly pushed back. Experts say tech companies craft narratives linking AI to economic growth that often do not hold water.
Nscale emerged from the Australian crypto firm Arkon E, mirroring CoreWeave, another key player in the government’s AI plans that also began as a bitcoin mining company. The government’s announcement had promised 750 jobs from the supercomputer build.
