AI cloud and data center firm Nscale is partnering with UK teleco BT to develop data centers in the UK.

The companies this week announced plans to deliver sovereign AI data centers in the UK. Nscale plans to build up to 14MW of capacity across three existing BT sites in the UK.

BT will provide infrastructure and connectivity to these new data centers. Full details on the three projects, including locations, weren’t shared.

Jon James, CEO, BT Business, said: “The development of AI and data center infrastructure is key to unlocking economic growth in the UK, and is only possible with the best, most trusted networks at the foundation. Our collaboration with Nscale reflects BT’s unique position as the digital backbone of the UK – the only provider with the scale, capabilities, and experience to enable the nation’s sovereign ambitions.”

The Nvidia-based infrastructure will provide new AI services for the private and public sectors and extend the capabilities of BT’s sovereignty platform.

Tom Burke, Nscale’s chief revenue officer, added: “Partnering with BT is a major milestone in supporting the UK’s AI ambitions and its position in the global AI economy. Telecommunications have a critical role to play in this shift – you can’t deliver AI at scale without resilient, high-capacity networks as the backbone. Together, BT’s nationwide digital infrastructure and Nscale’s modular, Nvidia-powered AI data center deployment will give organizations access to world-class compute, with the assurance that their data and operations can stay local.”

In the UK, Nscale lists an Nscale data center in Loughton and a partner facility in Slough.

The Loughton site was purchased in early 2025 and was said to have a power capacity of 50MW, scalable to 90MW. Currently under construction, the site aims to go live by the end of 2026. Microsoft is planning to build a supercomputer at the site with some 23,000+ GPUs. Microsoft and Google are set to lease capacity from Ncale in the UK.

Nscale previously said it plans to “significantly expand” its planned UK capacity to cater to OpenAI, with several expansions planned, including in Cobalt Park outside Newcastle. OpenAI has since paused its plans for a UK Stargate development, and it’s unclear if Nscale will be proceeding with the development.

Nscale has data centers in operation and development (both self-built and leased) in Norway, Finland, West Virginia, North Carolina, Iceland, Portugal, and Texas.

BT’s full data center footprint is unclear. But, through its Openreach division, the group operates more than 5,000 telephone exchange/central office locations across the UK.

BT and Openreach are in the process of closing the vast majority of these sites as part of the shutdown of the UK’s copper network. BT owns very few of these exchanges, having sold them in the early 2000s in a portfolio-wide sale-leaseback deal.

BT recently closed on its deal to sell its Irish data center business, totaling two data centers around Dublin, to Equinix.

Reports last year suggested the company was considering how it might be able to adapt its existing real estate footprint – enduring exchanges, cell tower sites, radio towers, etc – for potential Edge and colocation data center use.