A Major Step Towards AI Sovereignty Amidst European Investment Push

OpenAI has announced plans to launch its first AI data center in Europe, Stargate Norway, in partnership with British AI cloud infrastructure provider Nscale and Norwegian energy infrastructure firm Aker. Located near the small town of Narvik in northern Norway, the facility will be a 50/50 joint venture between Nscale and OpenAI, with the latter acting as an “off-taker” in the project.

The announcement comes as Europe strives to achieve AI sovereignty, investing heavily in data centers and compute power. The European Union has unveiled a multibillion-dollar investment into AI infrastructure, including €10 billion to set up 13 AI factories and €20 billion as an initial investment in the factories. Data sovereignty is key to this mission, given the sensitive nature of business and government data.

Nscale CEO Josh Payne emphasized that the purpose of Stargate Norway is to “leverage European sovereign compute” for the benefit of the continent. The site will have priority access to the center, with Norway’s AI ecosystem, including startups and scientific researchers, being given preference. The initial phase of the project, valued at around $2 billion, will comprise 20 megawatts (MW) of capacity, with plans to expand to 290 MW and utilize 100,000 Nvidia GPUs by the end of 2026.

The facility will run entirely on renewable power, utilizing hydropower from the region, and incorporate closed-loop, direct-to-chip liquid cooling to ensure maximum cooling efficiency. Excess heat from the GPU systems will be made available to support low-carbon enterprises in the region.

The Stargate Norway announcement follows OpenAI’s recent investment of $500 billion into 10 gigawatts of AI infrastructure in the United States, in partnership with Oracle and SoftBank. It also comes after the launch of Stargate UAE earlier this year and a recently signed deal with the U.K. government to accelerate AI adoption and boost infrastructure.

According to the European Union’s AI Act, which took effect in August 2024, companies building data centers must take steps to protect the environment and be transparent about the energy consumption of AI models. The bloc’s Energy Efficiency Directive also emphasizes energy efficiency in the ICT sector, including data centers, and directs data centers exceeding certain energy input thresholds to recover waste heat.

The launch of Stargate Norway is seen as a significant step towards achieving AI sovereignty in Europe, allowing the continent to maintain control over its data and AI infrastructure. The project’s focus on renewable energy and energy efficiency aligns with the European Union’s goals of reducing its carbon footprint and promoting sustainable development.

While the Stargate Norway announcement is separate from the EU’s investment into AI infrastructure, it highlights the growing importance of AI data centers in Europe. As the demand for AI computing power continues to grow, the need for sustainable and efficient data centers will become increasingly critical.

Key Facts:

• Stargate Norway will be a 50/50 joint venture between Nscale and OpenAI
• The facility will be located near Narvik, Norway, and will utilize 100,000 Nvidia GPUs by the end of 2026
• The initial phase of the project will comprise 20 MW of capacity, with plans to expand to 290 MW
• The facility will run entirely on renewable power and incorporate closed-loop, direct-to-chip liquid cooling
• Excess heat from the GPU systems will be made available to support low-carbon enterprises in the region
• The project is valued at around $2 billion and is expected to create jobs and stimulate economic growth in the region.