OpenAI is set to launch its inaugural European data centre, dubbed Stargate Norway, in a collaborative venture with British cloud provider Nscale and Norwegian energy firm Aker. The facility, to be developed as a 50:50 joint project between Nscale and Aker, will see OpenAI purchasing computing capacity as an off-taker, according to TechCrunch.

Located near Narvik in northern Norway, the site was selected for its cold climate, access to hydropower, and robust industrial infrastructure. The data centre will initially operate at 230 MW, scaling to 290 MW by the end of 2026, powered by 100,000 Nvidia GPUs. Both Nscale and Aker have committed approximately $1 billion each to the initial 20 MW phase, as reported by CNBC. The facility will run entirely on renewable energy, utilizing advanced closed-loop, direct-to-chip liquid cooling systems for efficiency, with excess heat repurposed to support local low-carbon industries.

The project aligns with Europe’s push for AI sovereignty and enhanced domestic data infrastructure. The European Union recently announced a €10 billion investment for 13 AI factories and €20 billion for early-stage AI development, emphasizing data sovereignty for sensitive governmental and commercial information. While it’s unclear if Stargate Norway directly ties into the EU’s strategy, Nscale’s CEO, Josh Payne, highlighted its role in bolstering Europe’s AI ecosystem, with priority access granted to Norwegian startups and research institutions.

The data centre will comply with the EU AI Act, effective August 2024, which mandates environmental standards and transparency in energy usage for AI model training, alongside the Energy Efficiency Directive’s requirements for energy recovery. This move follows OpenAI’s $500 billion AI infrastructure investment in the U.S. with Oracle and SoftBank, as well as recent partnerships with the UAE and the British government to advance AI deployment.