OpenAI Announces AI “Gigafactory” Data Centre in Norway

In a major project launched by OpenAI, alongside Nscale and Aker, a £747 million ($1 billion) data centre will be built in Norway next year. Named Stargate Norway, the first phase of the AI partnership will see 100,000 NVIDIA processors installed, with future rounds having the potential to increase capacity tenfold.

This announcement marks a significant chapter in OpenAI’s European infrastructure strategy. Selecting Norway was far from a random choice by OpenAI. Due to the low-cost hydroelectric power offered by Norway, which is ideal for the energy security required for long-term AI workloads, the country is a perfect location for the requirements of OpenAI.

“This is one of the most ambitious AI infrastructure investments in Europe to date. Narvik’s abundant hydropower, low-cost energy, cool climate, and mature industrial base make it an ideal location to deliver large-scale, sustainable AI capacity,” explained OpenAI in a statement.

For Josh Payne, CEO of Nscale, a firm billing itself as the hyperscaler engineered for AI, this expansion will boost the role of the region in the global AI ecosystem and also benefit from partnerships with regional institutions to advance AI innovation.

“Sovereign, scalable and sustainable infrastructure is now essential to remain competitive. We’re proud to partner with Aker, drawing on the team’s extensive experience and impressive track record, to deliver a new generation of AI economic and productivity growth in Europe,” explained Payne.

The political stability found in Norway and the relatively supportive regulatory landscape for AI experimentation are significant benefits that make the location strategically important. At a time when GPU availability is an increasingly important concern, Stargate Norway could prove to be a well-placed deployment site in Europe that can reduce latency and supply bottlenecks.

As geopolitical tensions rise across the world, issues of data sovereignty are growing. This European base will ensure a GDPR compliant environment, along with reducing dependency on US-based cloud hyperscalers for AI workloads. When opened, the data centre will use close to 20 megawatts of power, with up to 230 megawatts being accessible from power producer Nordkraft, if needed in the future.