Nscale will design and build the site, and it will be a 50/50 joint venture between the two companies. OpenAI will be an “off-taker” in the project, buying capacity from the data center. 

The announcement comes as Europe races to achieve AI sovereignty and invest in data centers and compute power. Earlier this week, the bloc unveiled details of its multibillion-dollar investment into AI infrastructure, including €10 billion ($11.8 billion) to set up 13 AI factories and €20 billion as an initial investment in the factories. Data sovereignty is key to that mission, due to the sensitive nature of business and government data. 

Nscale and OpenAI told TechCrunch that Stargate Norway isn’t a part of the European Union’s plans to scale AI at home. Nscale CEO Josh Payne told CNBC that part of the purpose of this project is to “leverage European sovereign compute” for the benefit of the continent. Norway’s AI ecosystem, like startups and scientific researchers, will get priority access to the center.

CNBC also reported that Nscale and Aker have each committed around $1 billion to the initial 20 megawatt (MW) phase of the project. OpenAI says Stargate Norway will initially deliver 230 MW capacity, with plans to expand to 290 MW, and will run on 100,000 Nvidia GPUs by the end of 2026.

The site will be located near Narvik, a small town in northern Norway. OpenAI said in a blog post the region is notable for its access to hydropower, a cool climate, and a “mature industrial base.”

“The facility will run entirely on renewable power and is expected to incorporate closed-loop, direct-to-chip liquid cooling to ensure maximum cooling efficiency,” said OpenAI. “Additionally, excess heat from the GPU systems will be made available to support low-carbon enterprises in the region.”

Per the EU AI Act, which took effect in August 2024 and bans systems with “unacceptable risk,” companies building data centers must take steps to protect the environment and be transparent about the energy consumption of AI models. Additionally, the bloc’s Energy Efficiency Directive emphasizes energy efficiency in the ICT sector, which includes data centers. The directive also directs data centers exceeding certain energy input thresholds to recover waste heat. 

The Stargate Norway announcement comes seven months after OpenAI announced it would invest $500 billion into 10 gigawatts of AI infrastructure in the United States over the next four years, in partnership with Oracle and SoftBank. The deal also follows the launch of Stargate UAE earlier this year, and a recently signed deal with the U.K. government to accelerate AI adoption and boost infrastructure.