OpenAI to Launch First European AI Data Center in Norway, Partnering with Nscale and Aker

OpenAI has announced plans to launch Stargate Norway, its first AI data center in Europe, in collaboration with British AI cloud infrastructure provider Nscale and Norwegian energy infrastructure firm Aker. The facility will be developed as a 50/50 joint venture between Nscale and Aker, with OpenAI serving as an off-taker—purchasing computing capacity from the site rather than owning it outright. The project is set to be located near Narvik, a town in northern Norway, chosen for its access to abundant hydropower, naturally cool climate, and established industrial infrastructure. The initial phase of the project, which will deliver 230 MW of capacity, is expected to expand to 290 MW, eventually housing 100,000 Nvidia GPUs by the end of 2026. Nscale will handle the design and construction, while both Nscale and Aker have each committed around $1 billion to the first 20 megawatt phase. OpenAI emphasized that Stargate Norway will operate entirely on renewable energy and will use advanced cooling technology, including closed-loop, direct-to-chip liquid cooling, to maximize efficiency. Additionally, excess heat generated by the GPUs will be repurposed to support low-carbon industries in the region, aligning with European sustainability goals. While the European Union recently unveiled a €30 billion plan to boost AI infrastructure—including €10 billion for 13 AI factories and €20 billion in initial funding—Stargate Norway is not part of that public initiative. Nscale CEO Josh Payne stated the project aims to leverage European sovereign compute capabilities to benefit the continent’s AI ecosystem, with Norwegian startups, researchers, and institutions prioritized for access. The announcement comes amid growing European efforts to achieve AI sovereignty, driven by concerns over data security, energy use, and reliance on non-EU infrastructure. The EU AI Act, which took effect in August 2024, prohibits AI systems deemed to pose “unacceptable risk,” while the Energy Efficiency Directive mandates improved efficiency in the ICT sector and requires large data centers to recover waste heat—both of which Stargate Norway is designed to meet. This development follows OpenAI’s earlier announcement of a $500 billion investment in 10 gigawatts of AI infrastructure in the U.S. over four years, in partnership with Oracle and SoftBank. It also builds on the launch of Stargate UAE earlier this year and a recent agreement with the UK government to accelerate AI adoption and infrastructure development.