The AI boom has a bottleneck nobody can code around: the grid connection. Microsoft has walked away from a planned UK AI data centre because the power may not arrive for a decade. The story says a lot about why Bitcoin miners, who already have power, became so valuable.
By Michal Beno, CEO, OneMiners26 October 2026
Microsoft has walked away from a planned 50 MW AI data centre at Loughton, Essex, near London, that Nscale was building for its Azure cloud. The local grid operator, UK Power Networks, said there may not be enough power for the site until the early to mid 2030s. Nscale grew out of Arkon Energy, a builder of Bitcoin mining sites. The lesson for the whole industry: in 2026 the scarce thing is not chips or buildings, it is a working grid connection. Bitcoin miners that already have one hold the asset everybody wants.
50 MW
planned AI capacity at Loughton
23,040
Nvidia chips planned for the site
2030s
earliest grid power, per UK Power Networks
73 GW
UK data centre grid requests, per Ofgem
CoinDesk, 19 October 2026, citing the Guardian and the Financial Times; Ofgem figure as reported by CoinDesk.
What happened at Loughton?
Nscale announced the project in 2025 together with Microsoft, Nvidia and OpenAI. The plan: 23,040 Nvidia chips and about 50 MW of computing for Microsoft's Azure cloud, running from early 2027. When the Guardian visited in February, the site was still a working scaffolding yard.
Then the grid answered. UK Power Networks, which runs the local network, told Nscale there may not be enough capacity until the early to mid 2030s. Microsoft walked away, as first reported by the Financial Times and the Guardian. Nscale said its other Microsoft contracts remain in place, that it has cleared the site, and that it is looking at other ways to bring in power.
Why the grid is the bottleneck
Building a data centre takes one to two years. Getting a large new grid connection can take much longer, because the lines, substations and transformers behind it have to be built too. In Britain the queue is enormous: data centre projects have asked for grid connections totalling about 73 GW of demand, according to the energy regulator Ofgem. That is well above Britain's entire peak electricity demand. Ofgem is now weighing tougher rules, because some applicants may never build and they hold up projects that are ready.
The same pressure shows up in the numbers of listed miners. CoinShares counts more than 4 GW of AI capacity under contract across the Bitcoin miners it tracks, but only about 550 MW of it is already billing customers. Most of the rest is waiting for buildings, chips or power.
How much of the miners' AI capacity is actually running?
Gigawatts of AI capacity, miners tracked by CoinShares (longer bar = more capacity)
Source: CoinShares, as reported by CoinDesk, 19 October 2026.
Why Bitcoin miners became AI's favourite landlords
A Bitcoin mining site is, at its core, a large power connection with land, cooling and staff attached. AI companies need exactly that, and they cannot wait ten years for it. That is why so many listed Bitcoin miners signed AI and high-performance computing deals: by March 2026 they had announced more than $70 billion of them, and CoinShares puts the combined backlog at more than $100 billion today. Our ranking of the 12 biggest AI deals by Bitcoin miners lists the largest.
The deals keep coming. On 19 October, Bitdeer said customers had committed to more than 70% of its A201 site in Malaysia, worth over $1.7 billion over five years, bringing its AI cloud backlog to about $2.9 billion.
But AI is a far bigger bet per megawatt. CoinShares estimates an AI-ready facility costs $8 million to $15 million per MW to build, against roughly $0.7 million to $1 million per MW for a Bitcoin mining site:
What does it cost to build one megawatt?
Construction cost per MW, US dollars in millions (shorter bar = cheaper)
Source: CoinShares estimates, as reported by CoinDesk, 19 October 2026. The Bitcoin mining bar shows the top of the range.
What it means for Bitcoin mining
Three things follow from the Loughton story.
Connected power is worth more every year. Every delayed grid connection makes the sites that are already energised more valuable, for mining and for AI.
Some hashrate will leave for AI. When a listed miner turns a site over to AI, its Bitcoin miners have to go somewhere else. That supports demand for hosting capacity.
Bitcoin mining stays the flexible buyer. A mining site can be built in months for a fraction of the cost and can switch off in seconds when the grid needs it. AI clusters cannot.
For an individual miner, the takeaway is simple: power that is already connected and priced is the valuable part. Our guide to what a 7-year fixed electricity rate is explains why locking it in matters.
Antminer S23e Hyd 2U - 865 TH/s
Water-cooled, 2U rack format: data-centre style mining.
View miner
Antminer S23 Hyd 3U - 1.16 PH/s
1.16 PH/s in one water-cooled 3U unit.
View miner
Sealminer A4 Ultra Hyd - 886 TH/s
9.45 J/TH water-cooled, one of the most efficient on sale.
View miner
While new AI sites wait years for the grid, OneMiners runs 17 live locations with 1,964 MW of capacity. The power is connected today, priced from 3.6 cents per kWh on a 7-year prepaid plan, with 98%+ average uptime. A Bitcoin miner bought today can be hashing in weeks, not in the 2030s. That is the edge the Loughton story makes clear: power you can use now is worth more than power promised later.
Frequently asked questions
Why did Microsoft drop the Nscale data centre?
UK Power Networks told Nscale there may not be enough grid capacity at Loughton, Essex, until the early to mid 2030s, and Microsoft walked away from the project, as reported on 19 October 2026.
Is Nscale a Bitcoin mining company?
Nscale grew out of Arkon Energy, which built Bitcoin mining sites. It now sells AI computing. It says its other Microsoft contracts remain in place.
Why are Bitcoin miners switching to AI?
They already have large power connections, which AI companies need. AI contracts can pay more per megawatt but cost about $8 million to $15 million per MW to build, against under $1 million for mining.
Does the AI boom hurt Bitcoin mining?
Not directly. Some listed miners move sites to AI, but Bitcoin mining remains the cheapest and most flexible way to use power, and connected capacity becomes more valuable.
AI is waiting for the grid. Your Bitcoin miner does not have to.
See hosting locationsBrowse Bitcoin minersSOURCES AND DATA
- Bitcoin mining offshoot Nscale loses Microsoft AI deal as power delay stretches into 2030s: CoinDesk, 19 October 2026, citing the Guardian and the Financial Times
- AI capacity under contract, capacity billing, backlog and build cost per MW: CoinShares, as reported by CoinDesk, 19 October 2026
- UK data centre grid connection requests: Ofgem, as reported by CoinDesk, 19 October 2026
- Bitdeer A201 offtake and AI cloud backlog: Bitdeer Form 6-K, 19 October 2026
- OneMiners locations, capacity, power prices and uptime: oneminers.com/pages/hosting-centers, 26 October 2026
Michal Beno
CEO of OneMiners, the global Bitcoin mining hosting and hardware platform with 17 published hosting locations, 7-year fixed electricity contracts and a 7-year hardware warranty. He writes about the economics of industrial Bitcoin mining.
Informational only, not financial advice. Figures are a snapshot from public market data, news reports and the OneMiners catalogue as of 26 October 2026 and can change quickly. Net-per-day figures are at today's numbers, before pool fees, and are not a forecast. Crypto prices can fall as well as rise. No return is offered or implied. Do your own research.
