New OpenAI Norway data center marks turning point in Europe’s AI race

By Elías Thorsson July 31, 2025
1168
The north Norway town of Narvik was chosen as the site for the AI data center. Pictured is the Church of Narvik (Leonhard Lenz via Wikimedia Commons)

OpenAI has announced the launch of Stargate Norway, its first AI data center initiative in Europe. The facility, to be built in Narvik, represents one of the most ambitious AI infrastructure projects on the continent to date.

The data center is expected to deliver 230 megawatts (MW) of compute capacity, with plans to expand by an additional 290 MW. By the end of 2026, the facility aims to house 100,000 NVIDIA GPUs, with the intention to scale further as demand grows. The project will be developed and designed by Nscale, a European AI infrastructure firm, in partnership with Aker, a Norwegian industrial company with deep roots in energy and technology. The site will be owned by a 50/50 joint venture between Nscale and Aker.

OpenAI will serve as the initial offtaker under a scalable agreement and will collaborate closely with Norwegian authorities to support the country’s sovereign AI ambitions.

“AI is a foundational technology that can boost productivity, drive economic growth, and power new industries,” OpenAI stated in the launch announcement. “Large-scale compute capacity in Europe will help ensure that this transformation benefits people and communities—including developers, researchers, scientists, and startups across Norway and Europe.”

Norway’s northern city of Narvik was chosen for its abundant hydropower, cool climate, low-cost renewable energy and mature industrial infrastructure—factors that make it ideal for sustainable, large-scale AI compute. The Stargate Norway facility will run entirely on renewable power and incorporate closed-loop, direct-to-chip liquid cooling for maximum efficiency. Surplus heat from the GPU systems will be repurposed to support low-carbon industrial enterprises in the surrounding region.

OpenAI’s decision comes amid soaring demand for its services across Europe. In Norway alone, weekly active ChatGPT users have quadrupled in the past year, with most users under the age of 35 and many of them developers. Across Europe, millions rely on ChatGPT and OpenAI’s API for daily work.

Beyond infrastructure, the initiative is also designed to stimulate Norway’s AI ecosystem. Aker and Nscale will offer priority access to compute resources for local startups and researchers. Additional capacity will be made available to public and private sector users across the Nordics, the UK, and Northern Europe, helping meet regional demand and drive AI adoption.