OpenAI to Launch First European AI Data Center in Norway

OpenAI Announces Stargate Norway: Its First European AI Data Center

OpenAI revealed on Thursday its intention to establish Stargate Norway, marking its inaugural AI data center within Europe. This venture is a collaborative effort involving British AI cloud infrastructure specialist Nscale and Norwegian energy infrastructure company Aker.

Partnership Details and Capacity

Nscale is responsible for the design and construction of the facility. The project will operate as a 50/50 joint venture between Nscale and Aker. OpenAI will function as a primary consumer of the data center’s capabilities, procuring capacity as needed.

Europe's Push for AI Sovereignty

This announcement arrives amidst Europe’s concerted efforts to attain AI sovereignty and bolster investments in data centers and computational resources. Recently, the European Union detailed its multi-billion dollar investment strategy for AI infrastructure. This includes a €10 billion ($11.8 billion) allocation for establishing 13 AI factories, alongside an initial €20 billion investment in these facilities.

Data sovereignty is a crucial element of this initiative, given the sensitive nature of both commercial and governmental data.

Independent of EU Plans, Focused on European Benefit

Both Nscale and OpenAI have clarified to TechCrunch that Stargate Norway operates independently of the European Union’s broader AI scaling plans. Josh Payne, CEO of Nscale, stated to CNBC that a key objective of this project is to “utilize European sovereign compute” for the advantage of the continent.

Priority access to the center will be granted to Norway’s AI ecosystem, encompassing startups and scientific researchers.

Investment and Technical Specifications

Reports from CNBC indicate that both Nscale and Aker have each pledged approximately $1 billion towards the initial 20 megawatt (MW) phase of the project. OpenAI anticipates Stargate Norway will initially provide 230 MW of capacity, with future expansion plans reaching 290 MW.

The data center is projected to house 100,000 Nvidia GPUs by the close of 2026.

Location and Environmental Considerations

The site will be strategically located near Narvik, a town situated in northern Norway. OpenAI highlighted in a blog post the region’s advantageous features, including access to hydropower, a naturally cool climate, and a well-established industrial foundation.

“The facility will be powered entirely by renewable energy sources and is designed to incorporate closed-loop, direct-to-chip liquid cooling for optimal efficiency,” OpenAI stated. “Furthermore, waste heat generated by the GPU systems will be repurposed to support low-carbon businesses in the surrounding area.”

Compliance with EU Regulations

The EU AI Act, which came into effect in August 2024 and prohibits systems posing “unacceptable risk,” mandates that data center developers implement measures to safeguard the environment and maintain transparency regarding the energy consumption of AI models.

Additionally, the bloc’s Energy Efficiency Directive prioritizes energy efficiency within the ICT sector, including data centers, and requires facilities exceeding specific energy input thresholds to recover waste heat.

Global Expansion of OpenAI’s Infrastructure

The Stargate Norway announcement follows seven months after OpenAI declared a $500 billion investment in 10 gigawatts of AI infrastructure within the United States over the next four years, in collaboration with Oracle and SoftBank.

This development also builds upon the launch of Stargate UAE earlier in the year and a recent agreement with the U.K. government to accelerate AI adoption and enhance infrastructure.

This article has been updated to clarify the distinction between Stargate Norway and the European Union’s investments in AI infrastructure.