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OpenAI to launch first European AI center in Norway
OpenAI plans to launch its first European AI data center, called Stargate Norway, in partnership with British AI cloud infrastructure provider Nscale and Norwegian energy firm Aker.
Nscale and Aker will form a joint venture near Narvik, investing US$1 billion each in the 20 megawatt initial phase.
OpenAI will purchase computing power from the center, which will scale up to 290 megawatts and 100,000 Nvidia GPUs by the end of 2026.
The data center will run entirely on renewable energy and use closed-loop, direct-to-chip liquid cooling, with excess heat supporting low-carbon businesses in the region.
Norwegian AI startups and scientific researchers will get priority access, though the project is not part of the EU’s official AI plans.
According to the EU AI Act and the Energy Efficiency Directive, data centers in Europe must be energy efficient and transparent about AI energy use.
🔗 Source: TechCrunch
🧠 Food for thought
1️⃣ Strategic location selection prioritizes energy efficiency over regulatory alignment
OpenAI’s choice of Norway demonstrates how energy infrastructure takes precedence over regulatory convenience in AI data center planning.
Norway offers abundant hydropower and natural cooling advantages that directly address the industry’s significant operational challenge—AI is projected to consume ten times more energy by 2026 compared to 2023 levels1.
The location near Narvik specifically leverages these natural advantages, with the facility planned to run entirely on renewable power and incorporate advanced cooling systems to maximize efficiency.
This strategic approach makes economic sense given that data centers account for 1.5% of global electricity consumption, expected to double by 20302.
While the EU is investing €30 billion in its own AI data center network and requiring strict energy reporting under the AI Act31, OpenAI chose to locate outside EU jurisdiction while still serving the European market.
2️⃣ First-mover advantage in European sovereign compute despite regulatory complexity
OpenAI’s Norway expansion positions the company ahead of intensifying competition for European AI infrastructure, even as the continent pushes for technological independence.
