Power, Not Chips, Now Limits AI Data Centres Worldwide
AI data centres are increasingly limited by electricity, permits and politics rather than by chip supply, and this week's news from four regions shows the same pattern.
Key takeaways
- A 45-day pause on new data centres took effect in San Francisco after the mayor signed it on 16 October 2026 [5][6].
- The Telegraph reported on 18 October that Microsoft withdrew from an anchor-tenant deal at Nscale's Loughton site in Essex. Microsoft has not commented in the reports we read [2][3].
- A Canadian Press report says a C$10 billion Nova Scotia project is built around a 20-year Anthropic lease. The lease is EverWind's statement, and the report did not independently confirm it [7][8].
- Bernstein, as reported by ANI in July, said power availability, not capital, is the main gate for new sites [4].
What happened
Four separate stories landed within about two weeks, in four countries. They have one cause in common: a data centre needs a large, continuous supply of electricity before it can run a single chip.
United States. San Francisco's Board of Supervisors voted unanimously on 6 October for a 45-day pause on new data centres, and Mayor Lurie signed it on 16 October [5][6]. The Planning Department must study the effects and draft rules. The sponsor, Supervisor Shamann Walton, said the zoning code has no real definition of a data centre [5]. KTVU reports that Oakland was weighing a similar pause and Los Angeles County had a proposal to ban large hyperscale sites [6].
United Kingdom. UK Power Networks told Nscale its Loughton site cannot be supplied with enough grid power until the early to mid-2030s, according to reporting carried by Euronews on 29 September [1]. The site was planned for about 23,000 Nvidia chips and a 2027 opening [1]. On 18 October the Telegraph reported that Microsoft pulled out of the deal, which Bloomberg and Investing.com relayed [2][3]. Nscale says it remains committed to Loughton and is looking at alternative power; Microsoft has not commented [2].
Canada. EverWind Fuels proposes a C$10 billion campus at Point Tupper, Cape Breton: C$8 billion for the data centre and C$2 billion for wind power [7]. It would draw 95 megawatts (MW) from late 2027 and 420 MW after a mid-2028 expansion [7]. EverWind says Anthropic signed a 20-year lease; Reuters also reports the lease [7][8]. The company's own wind farms will not be ready by late 2027, so it relies on a grid-operator study saying the existing network can support the site [7].
Russia. Kremlin envoy Kirill Dmitriev said on 16 October that Russia and the United States are discussing joint data centre projects, including with small nuclear plants, and gave no details [11]. The report cites no US response. This is one official's statement, not an agreed project.
Why it matters
Our analysis: chips are a purchase, but a grid connection is an infrastructure project. Bernstein, as reported by ANI, puts lead times for high-voltage transformers and switchgear at 80 to 100 weeks, and utility queues in Northern Virginia, Frankfurt and London at three to four years [4]. The same report says 35 to 40 per cent of announced capacity worldwide is at risk of delay or cancellation [4]. We have not read the Bernstein report itself.
The consequence is a shift in advantage. Companies with secured power and land can move first, while those waiting on future grid allocations carry delay risk [4]. Cities now add a second gate: permits, as San Francisco shows [5].
The global picture
Gulf: power is not the only risk. Amazon Web Services said on 15 September it could not restore its Bahrain cloud region or one UAE zone, and that the damage went beyond what its multi-zone design could withstand [9]. Al Jazeera reported on 13 October that Iran's security chief Mohsen Rezaei warned data centres could be attacked if war with the United States resumes [10]. An analyst quoted there called it mainly deterrence [10].
Japan: no new item in our checks this week. Background from May 2026, reported by Shulman Advisory citing Nikkei: grid operator TEPCO Power Grid aims to halve the time to build supply for data centres, with connection requests at 15 gigawatts (GW) by the end of the 2025 financial year, up 20 per cent [12]. We have not read the Nikkei interview.
China, Korea, India, Europe beyond the UK: no matching new item in our checks. For earlier context, see our 11 October wrap and the 17 October China export story.
What to watch next
- San Francisco: what the Planning Department proposes before the 45 days end [5].
- Microsoft and Nscale: any statement confirming or denying the Loughton exit [2].
- Nova Scotia: public consultation, provincial approvals and the late-2027 start date [7].
- Japan: a preferred bidder for the Utsunomiya data centre site was expected in late October, per the May report [12].
Our take
The scarce resource in AI has moved from silicon to kilowatts and permission. Announcements of gigawatts are cheap; connected megawatts are not. Treat any capacity figure without a grid date or a power source as a plan, not a capability.
FAQ
Is Microsoft confirmed to have left Nscale's Loughton site? No. The Telegraph reported it, Bloomberg and Investing.com relayed it, and Microsoft has not commented in the reports we read [2][3].
Why can't data centres just buy more chips? Chips arrive without a grid connection, and the connection is the slower part, according to Bernstein as reported [4].
Did San Francisco ban data centres? No. It is a 45-day pause on new ones while the city studies them [5].
Has Anthropic confirmed the Nova Scotia lease? Not in the reports we read; EverWind says it signed [7][8].
AI Worldwire is independent and has no commercial relationship with the companies covered, unless stated. This is analysis, not legal or financial advice.
Sources
- UK's biggest AI supercomputer may have to wait until the 2030s for enough power, Euronews, 29 September 2026.
- Microsoft pulls out of UK data centre deal with Nscale, Telegraph reports, Investing.com, 18 October 2026. Relays the Telegraph; Tier 2.
- Microsoft Scraps UK Data Center Deal With Nscale, Telegraph Says, Bloomberg, 18 October 2026. Headline only; the page could not be opened.
- Data center pipeline faces construction delays, cancellations to mount through 2027: Bernstein, ANI via The Tribune, 12 July 2026. Secondary report of a Bernstein note.
- Lurie signs data center moratorium, San Francisco Standard, 16 October 2026.
- San Francisco approves, other cities consider bans and reviews on data center growth, KTVU, October 2026.
- EverWind says $10B AI data centre proposal largest private investment in N.S. history, The Canadian Press via BNN Bloomberg, 16 October 2026.
- Anthropic signs lease for first Canadian data center, Reuters via The Daily Guardian, 16 October 2026.
- Amazon AWS unable to restore access to Bahrain, one UAE cloud data zone after war, Reuters via Khaleej Times, 16 September 2026.
- Iran threatens Gulf data centres: How exposed is the region's internet?, Al Jazeera, 13 October 2026.
- Putin envoy says Russia and US are discussing joint deals including on data centres, Reuters via Devdiscourse, 16 October 2026. Reports an official Russian statement; no US response in the report.
- Japan data center update: Utsunomiya tender, TEPCO PG aiming to halve connection lead time, Shulman Advisory, citing Nikkei, 13 May 2026. Tier 3 consultancy summary; background only.
AI Worldwire is independent and has no commercial relationship with the companies covered, unless stated. Research and drafting are assisted by AI; every article is reviewed and approved by a human editor before publication. Subscribe to the AI Worldwire newsletter. Last updated: 18 October 2026.