Microsoft Declines Nscale Texas Deal Expansion

Microsoft has decided not to exercise an option to expand its computing power agreement with Nscale at a Texas data center. The choice was made months ago and does not affect their existing contracts.

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FILE PHOTO: A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 21, 2025. REUTERS/Gonzalo Fuentes/File Photo

Microsoft declined to expand a Texas data center computing power agreement with a UK cloud provider, bypassing an option worth tens of billions of dollars. The decision preceded the partner's September initial public offering filing. The move follows an earlier cancellation of a flagship data center project in the United Kingdom amid infrastructure delays.