Highlights
- Loughton council demands proof site won't increase costs for residents.
- Data centre requires 50 megawatts, 50 per cent larger than originally proposed.
- Timeline pushed back to early 2027 to secure latest Nvidia processors.
Nscale, whose board includes former deputy prime minister Nick Clegg, wants to convert an old scaffolding warehouse in Loughton into what it calls Britain's biggest AI supercomputer.
The facility would run on 50 megawatts of processing power and count Microsoft as one of its main clients following a partnership deal between the two companies.
But Loughton Town Council has now asked Nscale to provide proper evidence showing the project's heavy electricity needs won't put extra pressure on the area's power grid or make energy more expensive for local homes and businesses.
Project gets bigger
Council officers sent their concerns to Epping Forest District Council, which is handling the planning application.
They pointed out the building is now half again as tall as the original design, with 50 per cent more space inside.
"The proposal would require more cooling and increased energy to facilitate this application," officials warned in their objection. They've asked Nscale to submit completely new planning documents.
The project timeline has also shifted. Instead of opening this year as first planned, the facility now won't be ready until early 2027.
The government has pointed to Nscale as a prime example of how Britain can become a leader in AI technology.
The company, run by Australian businessman Josh Payne from its UK base, announced earlier in March that it had raised $2 bn to grow its American operations. Major investors include Nvidia, Dell and Norway's Aker group.
The Loughton site will house thousands of Nvidia graphics chips and serve Microsoft's cloud computing needs.
Labour ministers have been encouraging AI companies to build in Britain and have tried to make planning rules easier.
However, the boom in AI facilities has created worries about how much electricity and water they use, which doesn't fit easily with Labour's promise to reach net zero carbon emissions.
A spokesperson for Nscale said site surveys and permit work are moving forward at Loughton.
"We expect construction work to begin in the second quarter of 2026," they told The Telegraph.
"While the schedule was recently updated to accommodate the installation of the latest Vera Rubin 200 technology, we expect the site to be operational in the second quarter of 2027."
