Nscale to build 200bn OpenAI Nvidia AI datacentre in Norway

London-based datacentre operator Nscale is expanding its operations by setting up an AI factory in Norway in collaboration with OpenAI. The new facility, named StarGate Norway, is a joint venture between OpenAI, Nscale, and Norwegian investment company Akers. Located in Narvik in the north of the country, the factory will be powered by 230MW of hydropower energy, emphasizing a commitment to sustainable practices.

The ambitious project will see the installation of 100,000 Nvidia GPUs by the end of 2026, with plans to scale up significantly in the following years. This move aims to establish sovereign AI infrastructure for Europe, catering to the growing demand for advanced computing capabilities in the region.

With an initial investment of $1 billion from both Nscale and Aker for the first 20MW phase, the total investment for the project is projected to exceed $200 billion. This significant financial commitment underscores the strategic importance of the AI factory in driving economic growth and innovation in Europe.

Josh Payne, CEO of Nscale, expressed enthusiasm for the project, stating, “Announcing Stargate Norway and delivering one of the first European AI Gigafactories to market is a strategic milestone for the region and boosts its role in the global AI landscape.” The collaboration between Nscale, Aker, and OpenAI aims to create a new era of AI-driven economic and productivity growth in Europe.

Furthermore, the site will utilize closed-loop, direct-to-chip liquid cooling technology to ensure optimal cooling efficiency. Excess heat generated by the GPU systems will be repurposed to support low-carbon enterprises in the region, highlighting a commitment to sustainability and environmental responsibility.

Øyvind Eriksen, President & CEO of Aker, emphasized the transformative potential of the project, stating, “Today, artificial intelligence and advanced data operations represent the next wave of value creation. With Stargate Norway, we’re creating new jobs, activity, and long-term opportunities in Narvik and the region.” The initiative is poised to leverage Norway’s surplus of clean energy and industrial readiness to drive digital industry growth.