OpenAI has announced a partnership with Nscale and Aker to build Europe’s first AI gigafactory in Northern Norway.
Stargate Norway, located in Kvandal, just outside Narvik, is OpenAI’s first AI data center initiative in Europe under its OpenAI for Countries program.
The region has abundant hydropower, low local electricity demand, and limited transmission capacity, the trio noted, offering power prices well below the European average.
The facility will initially deliver 230MW of capacity, with ambitions to expand by an additional 290MW. There's a target of 100,000 Nvidia GPUs for the end of 2026, with plans to expand that significantly in the years ahead.
Long-term, it has the potential to expand by ten times in future phases as more customer contracts are snapped up. Surplus capacity will be made available to public and private sector users across the UK, Nordics, and Northern Europe, serving regional demand.
“Sovereign, scalable, and sustainable infrastructure is now essential to remain competitive. We’re proud to partner with Aker, drawing on the team’s extensive experience and impressive track record, to deliver a new generation of AI economic and productivity growth in Europe,” said Josh Payne, CEO of Nscale.
"Together, we are combining OpenAI’s leading models with Nscale’s vertically integrated AI cloud, to provide the sustainable infrastructure necessary to support public benefit, build industrial resilience and enable long-term regional innovation.”
Stargate Norway will run on renewables
Stargate Norway will run entirely on renewable power and is expected to incorporate closed-loop, direct-to-chip liquid cooling to ensure maximum cooling efficiency. Meanwhile, excess heat from the GPU systems will be used to support local low-carbon enterprises.
“Norway has a proud history of turning clean, renewable energy into industrial value, powering global industries like aluminum and fertilizer,” said Øyvind Eriksen, president and CEO of Aker.
“Today, artificial intelligence and advanced data operations represent the next wave of value creation. Northern Norway, with its surplus of clean energy, available capacity, and industrial readiness, is the ideal launchpad for this transformation."
The site will be designed and built by AI infrastructure provider Nscale, and owned by a 50/50 joint venture between Nscale and energy engineering firm Aker.
The two companies have committed around $1 billion for the initial 20MW phase of the project, including more than $250 million in equity on a 100% basis, where each partner will contribute equally.
They said they'll start taking the first steps and mobilize resources for construction while the joint venture is set up.
OpenAI chief executive Sam Altman said the project is a huge step in helping accelerate compute capabilities for Europe. .
“Europe needs more compute to realize the full potential of AI for all Europeans — from developers and researchers to startups and scientists — and we want to help make that happen,” he said in a statement confirming the deal.
“I’ve always said we’d love to bring Stargate to Europe if the conditions are right, and we think we’ve found that in Narvik with clean, affordable energy, ideal climate, and great partners in Nscale and Aker. Stargate Norway will help provide the compute power to drive the next wave of AI breakthroughs and economic progress for Europe, in Europe.”
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