FT: Microsoft rejects expansion of Nscale contract in Texas — Channel NewsAsia

Microsoft has rejected an option that would have made it possible to more than double the size of its existing contract with British company Nscale to lease computing capacity at a data center site in Texas, United States.

What the decision concerns

Financial Times reported that Microsoft declined to exercise the option, citing people familiar with the matter. According to the publication, exercising the option would have made it possible to more than double the size of the existing contract.

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The agreement in question provides for Microsoft to lease computing capacity at a data center in Texas. Nscale is described in the report as a British company. The financial terms of the contract and the volume of leased capacity have not been disclosed.

Information verification

Channel NewsAsia wrote about the FT report on November 5, citing Reuters. The agency said it was unable to immediately independently verify the Financial Times information. No other details of Microsoft's decision were provided in the brief publication.