OpenAI to Launch First AI Data Center in Norway

OpenAI, the company behind ChatGPT, is reshaping the European AI landscape. It is launching its first European data centre in Norway, which marks an  expansion of AI tools across the continent. And this is in collaboration with Norwegian energy infrastructure company Aker and British AI cloud infrastructure supplier Nscale.

Stargate Norway represents OpenAI’s first AI data centre initiative in Europe under their “OpenAI for Countries” program. This project will serve as the  center for OpenAI’s advanced  AI computing needs, which brings artificial intelligence  closer to European users.

The property will be designed and constructed by Nscale, and the two businesses will share 50/50 ownership. As a “off-taker” in the project, OpenAI will purchase data centre capacity.

The project is in partnership between OpenAI, British AI cloud infrastructure provider Nscale, and Norwegian energy infrastructure firm Aker. This collaboration brings together AI expertise and infrastructure development.  OpenAI will serve as the primary customer, ensuring the facility has guaranteed demand from day one.

The declaration comes as Europe invests in data centres and compute capacity in a race to become an AI-sovereign nation. The union revealed specifics of its multibillion-dollar investment in AI infrastructure earlier this week, including €20 billion for the initial investment in the factories and €10 billion ($11.8 billion) to establish 13 AI factories. Given the sensitive nature of government and corporate data, data sovereignty is essential to that goal. 

Norway offers several compelling advantages for AI data centres. The facility will be built in the Narvik region in Northern Norway positioned to tap into cheap hydroelectric power. This location provides access to abundant renewable energy sources, which is crucial for powering energy-intensive AI operations. The data centre will run entirely on renewable power, which solves growing environmental concerns about AI’s energy consumption. Norway’s cold climate also provides natural cooling benefits, reducing the energy needed to keep powerful computing equipment at optimal temperatures.

This development addresses a critical need in European AI infrastructure. 

With Stargate Norway, European businesses, researchers, and governments will have access to world-class AI infrastructure within their region. .

The Stargate Norway announcement comes seven months after OpenAI announced it would invest $500 billion into AI infrastructure in the United States over the next four years. This shows OpenAI’s commitment to building global AI infrastructure, with Norway serving as the European anchor point. The Norwegian facility follows the launch of Stargate UAE, indicating OpenAI’s strategy of establishing regional AI hubs worldwide. This approach brings AI capabilities closer to users while addressing local regulatory and energy considerations.

The establishment of Stargate Norway shows a new phase in AI development. 

As AI models become more in demand for AI services, having distributed infrastructure becomes essential for performance and accessibility.

Stargate Norway is not included in the European Union’s ambitions to scale AI domestically, Nscale and OpenAI told TechCrunch. Josh Payne, CEO of Nscale, told CNBC that “leveraging European sovereign compute” for the continent’s advantage is one of the project’s goals. Priority access to the centre will be granted to members of Norway’s AI ecosystem, such as scientific academics and companies.

For European users, this means faster response times when using AI services, reduced costs, and better data privacy protection.

The project also highlights the importance of sustainable AI development.  By using renewable energy and efficient cooling systems, Stargate Norway sets a standard for environmentally responsible AI energy tools

OpenAI’s first European data center in Norway is  more than just an expansion,  it is  a  move that could grow the adoption of  AI across Europe. 

As the facility comes online by 2026, it will likely prompt improvement across European industries bringing the benefit of advanced AI  closer to home while caring for the environment that European rules demand.

The location will be close to the northern Norwegian town of Narvik. The area is famous for its “mature industrial base,” cool environment, and hydropower availability, according to a blog post by OpenAI.

“To guarantee optimal cooling efficiency, the facility is anticipated to integrate closed-loop, direct-to-chip liquid cooling and will be powered exclusively by renewable energy,” stated OpenAI. “Moreover, surplus heat from the GPU systems will be made available to assist local low-carbon businesses.”

Companies constructing data centres are supposed to apply environmental protection measures and disclose the energy consumption of AI models in accordance with the EU AI Act, which went into force in August 2024 and prohibits systems with “unacceptable risk.” Furthermore, the bloc’s Energy Efficiency Directive places a strong emphasis on data centres and the ICT sector’s energy efficiency. Additionally, data centres that surpass specific energy intake thresholds are instructed to recover waste heat under the directive. 

The statement from Stargate Norway follows OpenAI’s announcement seven months ago that it would work with Oracle and SoftBank to invest $500 billion in 10 gigawatts of AI infrastructure in the US over the next four years. The agreement comes after the establishment of Stargate UAE earlier this year and a recent agreement with the British government to improve infrastructure and hasten the use of AI.