OpenAI Launches Stargate Norway: Europes First AI Gigafactory for Enhanced Infrastructure Control

OpenAI is constructing its first European «gigafactory» for artificial intelligence in Norway. This initiative aligns with the company’s strategy for global expansion. The project, named Stargate Norway, will give Europe enhanced control over its own AI infrastructure.

This facility is the result of a collaboration between OpenAI, Norwegian industrial group Aker, and AI infrastructure provider Nscale. Once completed, Stargate Norway will become one of the largest AI data centers in Europe, housing 100,000 NVIDIA graphics processors by the end of 2026. The site will operate entirely on renewable energy and is designed for gradual scaling.

Located in Kvaanadal, near Narvik in northern Norway, the data center will capitalize on the region’s abundant hydroelectric power, cool climate, and established industrial infrastructure. Project partners believe these factors will help reduce energy consumption and costs. The initial capacity will be 230 megawatts, with plans to add an additional 290 megawatts as demand increases.

Stargate Norway is part of OpenAI’s initiative which is being implemented across European countries. This represents OpenAI’s first project in Europe utilizing the Stargate infrastructure. Previously, the company announced a similar project in the UAE.

Nscale will lead the construction and operation of the facility, drawing on its experience with sovereign AI infrastructure projects in Europe and North America. Ownership will be equally shared between Nscale and Aker, with both partners prepared to invest around $500 million for the initial 20-megawatt phase, including $250 million in equity.

OpenAI will be the first client, securing a portion of the computing power for its operations with the option to gradually increase its share. The facility is intended to comply with European regulations and will cater to government agencies, startups, research groups, and companies in Norway, the UK, and Northern Europe.

The data center will run solely on renewable energy and will utilize liquid cooling systems connected directly to the chips. Waste heat from the graphics processors will be repurposed to generate low-carbon energy for local businesses.

OpenAI, Aker, and Nscale also plan to collaborate with local universities and research institutes to promote education and foster regional expertise in AI.

The announcement regarding Stargate Norway comes against the backdrop of rising global investments in OpenAI. According to The Information, the company has doubled its annual revenue target to $12 billion, with ChatGPT currently having around 700 million active users per week.

However, this rapid growth brings significant expenses. OpenAI expects its cash outflow to reach approximately $8 billion in 2025 — a billion more than previously projected — due to costs associated with computing resources, infrastructure, and operational activities.

To meet the growing demand, OpenAI is expanding its infrastructure globally. Alongside Stargate Norway, the company plans to form a joint venture with SoftBank to build a major data center in the United States, with each partner ready to invest $18 billion. Potential locations include Ohio and Nevada.

To support these ambitions, OpenAI is seeking record investments of $40 billion. The company has already raised $10 billion and is reportedly in final discussions to secure an additional $30 billion from investors such as SoftBank, Sequoia Capital, Tiger Global, Dragoneer, and Founders Fund.

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