OpenAI has announced its first European AI data center, Stargate Norway, in collaboration with Nscale, a British AI cloud infrastructure provider, and Aker, a Norwegian energy infrastructure firm. The project aims to bolster AI capabilities in Europe through a dedicated data center. Nscale will oversee the design and construction of the facility, with OpenAI acting as an “off-taker,” procuring capacity from the data center.
Nscale and Aker will operate the construction of the site as a 50/50 joint venture. OpenAI’s role as an off-taker signifies a commitment to utilize the data center’s resources once operational. This arrangement allows OpenAI to secure necessary infrastructure while leveraging the expertise of Nscale and Aker in data center development and energy infrastructure.
The announcement coincides with a broader push within Europe to establish AI sovereignty by investing in data centers and computational resources. The European Union has articulated plans for substantial investments in AI infrastructure, including €10 billion dedicated to establishing 13 AI factories and an initial investment of €20 billion in those facilities. The concept of data sovereignty is perceived as critical due to the sensitive nature of governmental and business data.
Despite parallel efforts to scale AI infrastructure within the European Union, Nscale and OpenAI have clarified that Stargate Norway operates independently from these EU initiatives. As Nscale CEO Josh Payne told CNBC, the project intends to “leverage European sovereign compute” for the benefit of the continent. Moreover, Norwegian entities, specifically startups and scientific researchers within the AI domain, will be granted prioritized access to the data center’s resources.
According to CNBC, Nscale and Aker have each allocated approximately $1 billion towards the initial phase of the project, which will deliver 20 megawatts (MW) of capacity. OpenAI has stated that Stargate Norway is slated to provide an initial capacity of 230 MW, ultimately expanding to 290 MW. The data center is projected to operate using 100,000 Nvidia GPUs by the conclusion of 2026, signifying a substantial investment in processing power.
The data center will be situated near Narvik, a town in northern Norway. OpenAI cited the region’s access to hydropower, its cool climate, and its “mature industrial base” as key factors in the selection of the location. These characteristics align with the requirements for efficient and sustainable data center operations.
OpenAI has stated that the facility will depend entirely on renewable power sources. The company intends to incorporate closed-loop, direct-to-chip liquid cooling to maximize cooling efficiency. Furthermore, the excess heat generated by the GPU systems will be repurposed to support low-carbon enterprises within the surrounding region, promoting environmental sustainability. This demonstrates a commitment to minimizing the environmental impact of the data center.
Stringent regulations, exemplified by the EU AI Act which took effect in August 2024, mandate that data center operators implement measures to protect the environment and provide energy consumption transparency when constructing data centers. The EU Energy Efficiency Directive further emphasizes energy efficiency within the ICT sector, including data centers, and mandates that data centers exceeding specific energy input thresholds must recover waste heat.
The unveiling of Stargate Norway follows OpenAI’s announcement, seven months prior, of a $500 billion commitment to AI infrastructure within the United States. This investment, aimed at creating 10 gigawatts of AI infrastructure over the subsequent four years, is occurring in partnership with Oracle and SoftBank. Additionally, the Stargate Norway announcement follows the launch of Stargate UAE earlier in the year and a recent agreement with the UK government to accelerate AI adoption and enhance infrastructure.
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