OpenAI has announced plans to open its first AI data center in Europe, selecting Norway as the location for this strategic expansion. The project, branded “Stargate,” will be developed in partnership with British infrastructure firm Nscale and Norwegian energy company Aker through a 50-50 joint venture.
OpenAI will act as an “off-taker,” purchasing computing capacity from the new facility, which is set to be one of Europe’s largest. By the end of 2026, the center is expected to house 100,000 NVIDIA GPUs and operate with a total capacity of 230 megawatts, running entirely on renewable energy.
The data center will be built in Kvandal, near Narvik in northern Norway—an area known for its abundant hydropower and low local energy demand. The initial phase, delivering 20 megawatts, will see a combined investment of around $2 billion from Nscale and Aker.
“This project is about partnering with OpenAI and using European sovereign compute to bring more services and capabilities to the continent,” said Nscale CEO Josh Payne in an interview with CNBC.
While Payne declined to share details about project financing or profits, he emphasized Nscale’s broader European expansion plans. At this stage, no additional Stargate centers are planned.
Stargate was first introduced in the U.S. earlier this year through a collaboration involving OpenAI, Oracle, SoftBank, and UAE-based MGX. The initiative aims to invest $500 billion globally in AI infrastructure over the next four years. In June, a new Stargate campus was also announced in the UAE.
Europe has been actively promoting the idea of “sovereign AI,” urging companies to host data and AI operations within its borders. Industry leaders like OpenAI and Nvidia have aligned with this vision, highlighting the need for local infrastructure.
“Europe faces two key challenges,” said Payne. “It lacks sufficient compute capacity, and the market is highly fragmented. Projects like Stargate can help unify and power the AI ecosystem, driving productivity and economic growth.”
Nvidia’s GPUs remain the industry standard for powering AI workloads. The company’s CEO, Jensen Huang, recently visited Europe to encourage investment in local AI infrastructure. French AI startup Mistral has already announced plans to use Nvidia chips in an upcoming data center in France.
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