Tech Bytes: Microsoft pulls out of Aussie-founded Nscale data centre deal as power shortages hit AI boom

Impact · against what's priced in

Microsoft's exit from the Nscale deal is a marginal setback that confirms the power-grid bottleneck is a real constraint on AI scaling, though it does not fundamentally break the growth trajectory the market expects. For Nvidia, it highlights a specific deployment failure of 23,000 chips, reinforcing the risk that energy shortages may cap hardware demand.

MSFT−0.10

Challenges what's priced in

The price assumes