OpenAI has announced a strategic partnership to establish its first major European data center, marking a pivotal moment in the expansion of artificial intelligence infrastructure across the continent. The project, named Stargate Norway, represents a significant investment aimed at bridging the technological gap between Europe and the United States in the AI sector.
A Billion-Dollar Investment in Northern Norway
The facility will be located in Kvandal, near Narvik in northern Norway, and is designed to house 100,000 Nvidia graphics processing units by the end of next year. This ambitious project emerges from the collaboration between OpenAI, AI infrastructure company Nscale Global Holdings, and industrial group Aker.
The initial investment amounts to approximately one billion dollars, with Nscale and Aker forming an equal joint venture to own and develop the site. Of this sum, more than $250 million has been allocated to equity capital, demonstrating the partners' concrete commitment to the project.
Renewable Energy and Geographic Advantages
The choice of northern Norway is strategic. The region offers several advantages that make it ideal for large-scale data center operations:
- Abundant hydroelectric power available
- Low local energy demand keeping electricity prices well below the European average
- Complete reliance on renewable energy sources
- Favorable climate conditions for natural server cooling
These combined factors create an optimal environment for the intensive computational operations required by the most advanced artificial intelligence models.
Building a Bridge to Europe's AI Future
"Stargate Norway will help provide the compute power to drive the next wave of AI breakthroughs and economic progress for Europe, in Europe."
Sam Altman, CEO OpenAI
The project represents much more than a simple infrastructure expansion. Stargate Norway positions itself as a catalyst for the development of the European AI ecosystem, which has struggled to keep pace with the massive investments made in the United States and China following ChatGPT's launch in 2022.
Connections to the American Stargate Project
The Norwegian initiative comes six months after the announcement of the Stargate project in the United States, a joint venture aimed at building data centers for OpenAI with an initial investment of $100 billion, potentially extending to $500 billion over the next four years.
However, while the American project has encountered some difficulties in the startup phase and had to scale back short-term plans, Stargate Norway appears to be proceeding more smoothly, benefiting from accumulated experience and lessons learned.
Impact on the European Technology Landscape
This investment represents an important signal for Europe, which will finally be able to count on world-class AI infrastructure directly on its territory. The presence of Stargate Norway could:
- Accelerate the development of European startups and tech companies in the AI sector
- Reduce latency for European users of OpenAI services
- Create new job opportunities in the Norwegian technology sector
- Stimulate similar investments from other global technology companies
With Nscale handling the design and construction of the facility, the project combines international expertise with local knowledge, creating the foundation for efficient and sustainable long-term operations.