ctg. morning brief, 19 Oct 2026
On 19 Oct 2026, Microsoft has pulled out as anchor tenant of Nscale's datacentre in Loughton, Essex, the project the UK government sold as the country's "largest sovereign AI datacentre" (first reported by the Telegraph, 18 Oct; BBC and Guardian followed). The blocker is a plug: UK Power Networks told Nscale it cannot supply enough power until the early to mid-2030s.
Why it matters: Per the Guardian, Microsoft was Nscale's only publicly announced customer for the £2bn site, which was due to open next year and was still a scaffolding yard in March. Nscale says it remains committed, is looking at generating power on site, and that Microsoft stays on its Norway, Portugal and US projects. The bigger point: Europe's AI build is now gated by grid connections, not chips or capital. Edition candidate, as a sequel to 007.
Source: https://www.theguardian.com/uk-news/2026/oct/18/microsoft-drops-huge-ai-datacentre-project-in-essex-over-power-supply-concerns
Kongsberg will invest more than €45m in a counter-drone factory in Pomerania, near the Tricity in Poland. Serial production could start in the first half of 2028, with more than 100 long-term jobs and a construction contract due by the end of 2026 (Defence Industry Europe, 15 Oct).
Why it matters: The plant serves SAN, Poland's 18-battery counter-drone programme signed with PGZ in January and worth about NOK 16bn to Kongsberg: guns, 70 mm guided missiles and interceptor drones on one network. Kongsberg says the line will also serve other European customers. This is the order of operations Europe needs: a big domestic contract first, then the factory on the buyer's soil. The exact site is still undisclosed.
Source: https://defence-industry.eu/kongsberg-to-build-production-facility-for-counter-drone-systems-in-poland/
The EU's AI gigafactory tender is pitched as €30bn+ for up to seven sites, with bids due 12 Nov. DC Market Insights went through the specs (as summarised by Sullivan & Cromwell): only €1bn of the EU's up to €5bn share is legally committed. The other €4bn depends on the 2028-2035 EU budget, which nobody has agreed yet.
Why it matters: Each site must reach 120 MW (medium) or 150 MW (large) of IT load in Phase 2, with Phase 1 live within 18 months of signing. Read next to Loughton, the real scoring question is who already holds a high-voltage connection. Private money is not waiting: VOLT's €7bn Rotterdam campus signed Nebius as first tenant for up to 200 MW on a direct 380 kV line, outside the EU scheme. Follows edition 007, The Gigafactory Is a Purchase Order. Note: EuroHPC's own call page showed 3 Dec when DC Market Insights checked; confirm the deadline on the Funding & Tenders portal.
Source: https://www.dcmarketinsights.com/news/the-eus-e30-billion-ai-gigafactory-tender-wants-7-sites-of-up-to-150-mw-bids-are-due-12-november