From Press Release to Scrap Yard: The Essex ‘Supercomputer’ That Remains a Scaffold Site

The recent press releases heralding the arrival of a state-of-the-art supercomputer in the vicinity of north London paint an enthusiastic picture of a glass-and-concrete structure that towers over a picturesque, tree-lined street. Alongside visuals of luminescent blue robot faces, the announcements present the site as a hub at the forefront of a technological revolution poised to reshape the future.

However, during a visit by the Guardian last month, the site bore little resemblance to its artistic portrayal. Instead, the four-acre area located in Loughton resembled more of a depot dedicated to stacked pylons and scraps under a corrugated roof, with flatbed trucks coming and going, loaded with poles.

With merely nine months left until the completion deadline, the area remains a bustling scaffolding yard.

The Loughton supercomputer saga offers a revealing glimpse into the ambitious aspirations surrounding artificial intelligence, touted as a potential economic powerhouse both in the UK and globally. Yet, it also showcases how dreams can rapidly transform into a rather less exhilarating reality.

Globally, significant amounts of capital, along with the fortunes of governments, financial institutions, and pension funds, are at stake, banking on the capability of just a handful of major corporations to swiftly expand AI infrastructure and fundamentally transform the global economy.

Notably, Jensen Huang, the CEO of Nvidia, expressed strong confidence in the UK as an attractive destination for AI investments. He made two trips to London in June and September 2025, during which he appeared on stage with Keir Starmer, the leader of the UK Labour Party. Huang described the UK’s tech ecosystem as “the envy of the world.” Subsequently, during a rush of AI-related deal-making by the government, Huang encouraged investors to consider the UK if they were seeking wealth, suggesting the UK had the potential to become an “AI superpower”.

However, an investigation by the Guardian into vital investments in the UK reveals a different story. The vast sums anticipated do not seem to translate into genuine commitments to bolster the UK economy. Moreover, supposedly “new” data center projects often turn out to be outdated buildings receiving only new chips.

This trend is not confined to the UK. A recent report indicated that half of the global data center projects slated to go live this year might encounter delays. In the United States, OpenAI’s ambitious $500 billion Stargate initiative is facing substantial setbacks due to disagreements among stakeholders.

Cecilia Rikap, an economics professor at University College London, remarked, “A substantial narrative has been sculpted by tech firms that connects AI with economic growth. Companies assert they are making significant investments, but this narrative holds little substance.”

Key among these investments is the Loughton supercomputer project, which the government unveiled in 2025 as part of a strategy to “turbocharge” the economy. Various reports claim it will possess three times the power of the fastest supercomputer in the US, elevating it to the “global top tier” of AI infrastructure.

The company in charge of this supercomputer, Nscale, originated as a small London startup with no prior experience in building data centers.

Nscale identifies itself as an “AI hyperscaler” and lists 11 data centers on its website, including sites in Portugal and the proposed location in Loughton. However, many of these locations seem to be either still under construction or acquired from other businesses.

While the government’s announcement suggested that Nscale had “signed a contract” to construct the supercomputer by 2026 and was investing $2.5 billion into the UK’s economy, Nscale claimed they had already secured a site in Loughton and assured that 750 jobs would be created as construction progressed.

A later update in September indicated that Microsoft would collaborate with Nscale on the site, as part of the tech giant’s $30 billion investment in the UK. Microsoft claimed that $15 billion of this investment would be allocated to the Loughton supercomputer project.

However, the Guardian has learned that Nscale’s “contract” and the reported $17.5 billion investment from Nscale and Microsoft do not represent formal commitments to the UK government, local businesses, or the UK economy.

The contract referenced by the government seems to be an agreement between Microsoft and Nscale, as clarified by an Nscale representative. Additionally, the government admitted it does not possess a mechanism for auditing the supposed $2.5 billion investment; rather, it may encompass equipment and capital funding and is not a formal contract, but rather an intention of capital commitment.

Interestingly, both Nscale and CoreWeave, another key player in the government’s AI strategy, began as Bitcoin mining companies. Nscale itself split off from the Australian crypto firm Arkon Energy in 2024. The promised investment is primarily expected to focus on Nvidia chips.

Regarding Microsoft’s role, the company clarified that it is not directly constructing the supercomputer but has committed to becoming a customer once the data center is operational.

Ultimately, the reported $17.5 billion “investment” will effectively consist of a UK company acquiring chips manufactured in Taiwan by a US company, then housing them within a building in Loughton to be leased to another US tech company.

When queried about the creation of 750 jobs, Nscale was unable to provide clarity on how that figure was formulated.

The completion of the supercomputer by year-end remains uncertain. Land records imply that Nscale has not yet registered as the site owner, despite the supposed purchase being claimed over a year ago. Nscale couldn’t confirm if the company owns the land or provide details of any transaction occurring.

Nscale submitted planning permission to construct the supercomputer in the closing week of February, which closely followed the Guardian’s inquiries into the matter. Reports suggest Nscale anticipates construction to start “very soon,” within a matter of months.

Reports suggest that completing the site within the year is highly improbable, as building a hyperscale AI facility generally requires 18 to 36 months—particularly for a project aiming to create one of the world’s most powerful supercomputers.

In response, Nscale remarked: “As a UK-headquartered firm, we remain fully committed to the investment in the UK that we announced, with the Loughton project in collaboration with Microsoft advancing as we anticipated. We’re investing not just in the site, but also in offsite power infrastructure and local contractors and suppliers.”

A fundamental aspect of the global AI economy could be that even if data centers do not come to fruition, economic growth continues, and jobs are generated, benefiting companies like Nscale—and enriching their shareholders.

CoreWeave also plays a vital role in the government’s AI initiatives and is expected to invest £1.5 billion in an “AI hub” located in Lanarkshire. Similarly to Nscale, CoreWeave transitioned from bitcoin mining to the AI arena, with plans to establish AI data centers across both the US and Europe.

Recently, shareholders of CoreWeave filed a lawsuit against the company, accusing it of withholding information surrounding its capability to construct these data centers, even as it pursued a public offering and its valuation skyrocketed. This lawsuit alleges that CoreWeave misrepresented its ability to deploy AI at “massive scale” while obscuring construction delays across its data centers. The fallout from this revelation caused a significant decline in its stock price, occurring six months after CoreWeave went public.

CoreWeave acknowledged the lawsuit and contended that its claims are without merit, insisting that it intends to mount a vigorous defense.

If the claims are substantiated in court, it may turn out that concealed information enabled investors—entities such as Nvidia, who invested heavily prior to CoreWeave’s public debut—to garner larger profits during the company’s share offering.

“This pressure to secure an IPO poses significant challenges,” remarked Alvin Nguyen, an analyst from Forrester. “Companies aim to ensure early investors see returns.”

In a similar vein, Nscale secured $1.1 billion in funding in September, shortly after the government announced its pivotal role in the UK’s Stargate initiative. During this timeframe, Nvidia acquired a notable stake in Nscale through a £500 million investment.

Although this capital has yet to be reflected in Nscale’s financial statements, in October, the company issued over 2.9 million shares at a nominal price of 1 pence each.

Recently, Nscale announced another funding round, raising $2 billion, which significantly boosted its valuation to $14.6 billion. As a result, those 1 pence shares could now be worth immensely more. The ownership of Nscale’s shares remains unclear, though investors include entities like Nvidia, Aker SA, and Blue Owl Management.

Nscale asserted that there may be various classes of shares that complicate the situation further.

In conclusion, “It reflects a 350,000% return on investment,” Nguyen commented. “Few investments can offer such returns.”