The facility, owned 50/50 by Nscale and Ake, will see each partner commit approximately $1 billion to its initial phase. OpenAI will serve as the anchor tenant or “off-taker,” purchasing computing capacity to support its ChatGPT and API services across Europe. The data center targets 230 megawatts of power initially, expandable to 520MW, and plans to deploy 100,000 of NVIDIA’s advanced GB300 Superchip processors by the end of 2026 358.
Located in Kvandal, near Narvik, the site leverages Northern Norway’s natural advantages: abundant renewable hydropower, average temperatures below 5°C (41°F), and industrial infrastructure. These factors slash cooling and energy costs critical for power-hungry AI workloads. “Power prices here are well below the European average,” noted Nscale CEO Josh Payne, emphasizing the location’s economic viability.
Sovereignty and Sustainability
Stargate Norway directly addresses Europe’s push for “sovereign AI,” keeping data processing and infrastructure within regional borders. OpenAI CEO Sam Altman highlighted the project’s alignment with this mission: “Europe needs more compute to realize AI’s full potential for all Europeans”. Priority access will be granted to Norwegian startups and researchers, with surplus capacity extending to the UK, Nordics, and Northern Europe.
Environmental innovation is central to the design. The facility will run entirely on renewable hydropower and use closed-loop, direct-to-chip liquid cooling to maximize efficiency. Excess heat from GPU clusters will be redirected to support local low-carbon industries, a model aligning with EU energy reuse directives.
Europe’s Compute Race
The project arrives amid a continental scramble for AI infrastructure. The EU recently unveiled a €10 billion ($10.7 billion) plan to build 13 “AI factories,” while France’s Mistral and others race to secure GPU capacity. Stargate Norway positions Norway historically as an energy exporter and a digital infrastructure leader. Aker CEO Øyvind Eriksen framed it as an evolution: “Norway turns clean energy into industrial value. AI is the next wave”.
Though separate from EU initiatives, Stargate Norway complements Brussels’ vision. OpenAI has also signed partnerships with Estonia and the UK, and submitted bids for the EU’s AI Gigafactories program.
Implications and Challenges
Analysts note the project could narrow Europe’s computing deficit. “Europe lacks sufficient AI infrastructure and is fragmented,” Payne observed. “Large-scale projects like this let the ecosystem build competitive AI products”. Still, challenges persist, including securing additional power contracts for expansion and navigating evolving EU AI regulations.
For Northern Norway, Stargate promises economic revitalization. The facility will collaborate with local universities and create long-term tech jobs in Narvik, a town of 20,000. As construction begins, the Arctic may soon power Europe’s AI ambitions.
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