OpenAI has announced a significant partnership to establish its first artificial intelligence data center in Europe, branded as Stargate Norway. This initiative represents a strategic expansion of the company’s ambitious Stargate project, originally conceived as a massive AI supercomputer infrastructure. The partnership involves collaboration with Nscale Global Holdings, a British AI cloud computing firm, and Aker ASA, a Norwegian investment group. The project aims to create a secure, scalable, and energy-efficient facility powered entirely by renewable sources, addressing the growing demand for sovereign AI workloads across the continent.
Key Details of the Stargate Norway Project
The data center, described as Europe’s first AI “gigafactory,” is planned for construction in Kvandal, near Narvik in northern Norway, a region known for its abundant hydroelectric power and favorable climate for cooling. It is expected to house up to 100,000 Nvidia GPUs, making it one of the largest such facilities in Europe. The total investment is estimated at approximately $1 billion, structured as a 50/50 joint venture between the partners. Operations are slated to commence next year, with a focus on sustainability and compliance with European data sovereignty regulations.
The following table outlines the primary aspects of the partnership and project:
| Aspect | Details |
|---|---|
| Partners | OpenAI, Nscale Global Holdings (UK-based), Aker ASA (Norway-based). |
| Location | Kvandal, outside Narvik, Norway, leveraging renewable hydroelectric energy. |
| Scale | Up to 100,000 Nvidia GPUs; designed for high-performance AI computing. |
| Investment | Approximately $1 billion, marking a major AI infrastructure commitment in Europe. |
| Timeline | Construction to begin imminently, with operations starting in 2026. |
| Objectives | Provide energy-efficient infrastructure for AI development, emphasizing sovereignty and sustainability. |
Broader Context and Implications
This development follows challenges in the original U.S.-centric Stargate project, which aimed for a $500 billion investment but faced delays, including stalled negotiations with SoftBank. OpenAI has pivoted by securing alternative deals, such as a $30 billion annual agreement with Oracle for additional capacity, and now extending operations internationally. The European expansion aligns with OpenAI’s vision of “OpenAI for Countries,” tailoring AI infrastructure to regional needs while navigating geopolitical considerations like data privacy under the EU’s GDPR.
The partnership underscores the global race for AI dominance, with Europe seeking to bolster its technological independence amid U.S.-China tensions. It is anticipated to create jobs and foster innovation in sustainable computing, though it may raise concerns about energy consumption and environmental impact despite the renewable focus. Investors and stakeholders should monitor regulatory approvals and potential expansions to other European nations.
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