OpenAI Launches Stargate Norway: $2B European AI Data Center
OpenAI has announced the launch of Stargate Norway, its inaugural AI data center in Europe, through a significant $2 billion partnership with British cloud infrastructure firm Nscale and Norwegian energy company Aker. This ambitious project, located in Kvandal near Narvik in northern Norway, is set to become one of Europe’s most substantial AI infrastructure investments, aiming to deliver up to 290 megawatts (MW) of compute capacity, powered entirely by renewable energy.
The Stargate Norway facility, part of OpenAI’s “OpenAI for Countries” program, plans to house 100,000 NVIDIA GPUs by the end of 2026, with intentions for further expansion in the years ahead. This initiative marks OpenAI’s first data center presence on the European continent, following a similar project launched in the UAE earlier this year. OpenAI also has plans for major data centers in the United States.
The selection of Narvik is strategic, leveraging the region’s abundant hydropower resources, low electricity costs, cool climate, and established industrial infrastructure. These conditions are ideal for large-scale, energy-intensive data operations, resulting in power prices significantly below the European average. The data center will run entirely on renewable power and will incorporate closed-loop, direct-to-chip liquid cooling for maximum efficiency. Furthermore, excess heat generated by the GPU systems will be made available to support low-carbon enterprises in the region, promoting a circular economy approach.
The partnership sees Nscale leading the design and construction of the site, with ownership structured as a 50/50 joint venture between Nscale and Aker. Both companies are committing approximately $500 million each for the initial phase, contributing to the overall $2 billion investment. OpenAI will serve as an initial “off-taker,” purchasing compute capacity from the facility with the option to scale its usage over time.
This project aligns with Europe’s broader push for AI sovereignty and its efforts to build robust infrastructure capable of supporting the escalating demand for computing power. The International Energy Agency (IEA) projects that global data center electricity consumption will more than double by 2030, reaching 945 TWh, with AI installations being a primary driver of this growth. Europe is actively seeking to address this demand by investing in “gigawatt factories” – large data centers with additional infrastructure – to support new AI products.
Stargate Norway is designed to provide secure, scalable, and energy-efficient infrastructure for sovereign AI workloads across Europe, adhering to European regulatory frameworks. Beyond serving OpenAI’s needs, Aker and Nscale will prioritize access for Norway’s homegrown AI startups and scientific researchers, fostering local expertise and innovation. Any surplus capacity will be made available to public and private sector users across the UK, Nordics, and Northern Europe, contributing to the broader development of Europe’s AI ecosystem. Sam Altman, CEO of OpenAI, emphasized the importance of bringing Stargate to Europe, citing Narvik’s favorable conditions as crucial for driving the next wave of AI breakthroughs and economic progress for the continent.
The move also reflects a broader trend of data center development shifting towards regions with abundant and affordable renewable energy, moving away from traditional hubs like Frankfurt, London, Amsterdam, Paris, and Dublin (FLAP-D) due to grid congestion and slower energy infrastructure development. This investment in Norway reinforces Europe’s commitment to building a sustainable and resilient AI infrastructure.