Introduction
In a landmark move on July 31, 2025, OpenAI, in partnership with Nscale Global Holdings and Aker ASA, announced the development of Stargate Norway—its first AI data centre facility in Europe. This $1 billion-scale initiative aims to deploy 100,000 Nvidia GPUs by the end of 2026, powered entirely by renewable hydropower in northern Norway
This ambitious project underlines OpenAI’s strategy to expand compute infrastructure globally and to offer sovereign, sustainable AI hosting options that comply with European regulations.
Background: The Stargate Programme and European Push
OpenAI’s Stargate programme—initially launched in the U.S. and UAE—represents its flagship infrastructure platform, designed to ensure widespread AI access under the OpenAI for Countries initiative.
Europe, facing a shortage of large-scale AI compute capable of supporting research, startups, and enterprise use, stands to benefit significantly from in-region infrastructure. With GDPR and emerging EU AI Act compliance priorities, local compute also minimizes data sovereignty challenges.
What Happened: Details of the Stargate Norway Project
Stargate Norway will be built in Kvandal, near Narvik, selected for its abundant hydroelectric power, cool climate, and existing industrial infrastructure
The initial 230 megawatt (MW) power capacity is being financed at approximately $1 billion by Nscale and Aker, in a 50/50 joint venture, with room for expansion to 520 MW and future phases supporting up to a tenfold GPU increase.
OpenAI will act as an anchor customer but plans to make excess capacity available to European startups, research institutes, and public sector users across the UK, Nordics, and Northern Europe
Why It Matters: Strategic and Regional Impact
European Sovereignty & Compliance
Deploying compute within EU jurisdiction addresses legal and regulatory demands—especially around GDPR and upcoming regulations under the EU’s AI Act. The Stargate Norway centre offers a European compute option aligned with local policy frameworks
Sustainability and Efficiency
Norway’s inexpensive, renewable hydropower enables cost-effective and low-carbon AI compute. The facility uses advanced direct-to-chip liquid cooling and heat recycling systems to support local energy economies and reduce environmental impact
Boost for Regional AI Ecosystem
OpenAI commitments to hosting capacity for local developers, universities, and startup communities help build an AI ecosystem in Northern Europe. The project includes cooperation with academic institutions to foster innovation in AI research
Regionally, the project may create jobs, energy demand, and socioeconomic growth—as well as technological expertise anchored in Norway.
Expert Reactions and Industry Commentary
European policymakers and innovation leaders welcomed the initiative. A Norwegian minister called the project a modern industrial example that aligns with responsible growth and digital readiness
Industry analysts assert that Stargate Norway helps address Europe’s AI compute gap: “This facility ensures compute sovereignty and reduces dependency on U.S. data centres,” noted a European tech policy expert.
Critics have raised concerns about energy pricing and future expansion oversight. Norwegian opposition parties warned of potential environmental strain and called for stricter regulatory reviews—though project leaders maintain the site leverages surplus energy with minimal impact
Impact: Compute, Regulation, and the AI Landscape
Compute Expansion
100,000 Nvidia GPUs will significantly boost European compute capacity—impacting AI model training, simulation, climate research, and language model development.
Regulatory Alignment
By operating within EU legal frameworks, the data centre offers reassurance to sensitive industries like finance, healthcare, and public services.
Competitive Signaling
Stargate Norway signals a competitive alternative to U.S. cloud giants. It may encourage other AI providers to build compute in Europe, and reinforce OpenAI’s position as a global compute leader.
Future Outlook
Scaling and Phases
Phase one will be operational by mid-2026 with 10,000 GPUs and ~230 MW capacity. Phase two aims to expand to up to 520 MW and potentially 1 million GPUs over time
Expanded Consortium and Services
OpenAI may invite European public sector clients and academic partners. Additional partnerships may form around AI research, climate modeling, and regional AI startups.
Regional AI Infrastructure Trend
Stargate Norway may spark similar AI data centre investments across Europe—especially in Nordic regions with renewable power and regulatory support.
Focus Keyword Integration
The focus keyword OpenAI Stargate Norway has been woven through this article to emphasize its centrality in regional AI infrastructure initiatives and policy-aligned compute expansion.
