OpenAI is building its first European AI "gigafactory" in Norway, a move that fits into the company's ongoing global expansion. The project, called Stargate Norway, is intended to give Europe more control over its own AI infrastructure.
The facility is a collaboration between OpenAI, Norwegian industrial group Aker, and AI infrastructure provider Nscale. When it's finished, Stargate Norway will be one of Europe's largest data centers for artificial intelligence, running on 100,000 NVIDIA GPUs by the end of 2026. The site will operate entirely on renewable energy and is designed to scale up over time.
Located in Kvandal, near Narvik in northern Norway, the data center takes advantage of the region's abundant hydropower, cool climate, and established industrial infrastructure. These factors, according to the project partners, will help keep energy use and costs down. The initial capacity is set at 230 megawatts, with plans to add another 290 megawatts as demand grows.
Stargate Norway is part of OpenAI for Countries and marks OpenAI's first European project under its Stargate infrastructure platform. The company previously announced a similar project, Stargate UAE.
OpenAI's European Strategy
Nscale will lead construction and operations at the site, drawing on experience from sovereign AI infrastructure projects in Europe and North America. Ownership will be split 50/50 between Nscale and Aker, through Aker subsidiaries, with each partner committing about $500 million for the initial 20-megawatt phase, including $250 million in equity.
OpenAI will act as the initial offtaker, securing a portion of the computing power for its own work, with the option to expand its share over time. The facility is intended to meet European regulatory requirements, with a focus on serving public institutions, startups, research groups, and companies in Norway, the UK, the Nordic countries, and Northern Europe.
The data center will run exclusively on renewable power and use liquid cooling systems attached directly to the chips. Waste heat from the GPUs will be repurposed to supply low-carbon energy to local businesses.
OpenAI, Aker, and Nscale also plan to collaborate with local universities and research institutes to support education and build up regional AI expertise.
Funding and Expansion
The Stargate Norway announcement comes as OpenAI ramps up global investment. According to The Information, the company has doubled its annual revenue target to $12 billion, and ChatGPT now has around 700 million weekly active users.
But rapid growth means soaring costs. OpenAI expects its "cash burn" to reach about $8 billion in 2025 - a billion more than previously estimated - driven by spending on compute, infrastructure, and operations.
To meet growing demand, OpenAI is expanding its infrastructure worldwide. Alongside Stargate Norway, the company is planning a major US data center joint venture with SoftBank, with each partner set to invest $18 billion. Ohio and Nevada are being considered as possible locations.
To fund these plans, OpenAI is seeking a record $40 billion funding round. The company has already raised $10 billion and is reportedly in final talks for another $30 billion, with backers including SoftBank, Sequoia Capital, Tiger Global, Dragoneer, and Founders Fund.
