OpenAI to launch AI data center in Norway, its first in Europe

On Thursday, OpenAI announced its intention to establish Stargate Norway, marking its inaugural AI data center on European soil. This initiative is a collaborative effort with Nscale, a British provider of AI cloud infrastructure, and Aker, a Norwegian energy infrastructure firm. The venture will be a 50/50 partnership, with Nscale tasked with designing and constructing the facility. OpenAI's role in this project will be as an 'off-taker,' purchasing capacity from the data center. This announcement arrives during a crucial period for Europe, which is striving to bolster its AI sovereignty and enhance its data center capabilities. Earlier this week, the European Union revealed a substantial multi-billion-dollar investment plan aimed at AI infrastructure, which includes a commitment of 10 billion euros (approximately $11.8 billion) to launch 13 AI factories and an initial investment of 20 billion euros in those factories. Data sovereignty is a pivotal aspect of this initiative, given the sensitive nature of governmental and business information. While it remains uncertain if OpenAI’s data center aligns with the EU’s broader strategy to expand AI capabilities within its borders, the company has not provided immediate comments regarding this inquiry. According to Nscale CEO Josh Payne, the project's primary goal is to enhance 'European sovereign compute' to benefit the continent. The Norwegian AI landscape, including startups and researchers, will receive priority access to the new center. Reports indicate that both Nscale and Aker have allocated around $1 billion each for the initial 20 megawatt (MW) phase of this venture. OpenAI anticipates that Stargate Norway will initially provide 230 MW of capacity, with plans to increase this to 290 MW. By the end of 2026, the facility is expected to operate using 100,000 Nvidia GPUs, situated near Narvik, a small town in northern Norway. OpenAI highlighted the region's advantages, including its abundant hydropower resources, favorable climate, and established industrial foundation. In a blog post, OpenAI stated, 'The facility will run entirely on renewable energy and is designed to incorporate advanced cooling technologies for optimal efficiency.' Furthermore, they noted that any excess heat generated by the GPU systems would be utilized to benefit low-carbon enterprises in the vicinity. The announcement of Stargate Norway comes shortly after OpenAI revealed plans to invest $500 billion in 10 gigawatts of AI infrastructure across the United States over the next four years, partnering with Oracle and Softbank. This initiative follows the earlier launch of Stargate UAE and a recent agreement with the UK government to enhance AI adoption and infrastructure development.