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OpenAI pauses UK data centre deal over energy costs and regulation

On Thursday, Microsoft-backed OpenAI paused its Stargate UK data center project, citing an unfavorable regulatory environment and high energy costs as obstacles to long-term investment.
Launched last September during President Donald Trump's visit, the project aimed to support Britain's 'AI Growth Zone' through partnerships with Nvidia and Nscale, targeting 5,000 jobs and £30bn in private investment.
Stargate represents a $500bn private sector investment into OpenAI's global infrastructure, with the company recently valued at $852bn following a major funding round.
Prime Minister Keir Starmer has centered AI in his growth strategy to revive the economy, and a government spokesperson said officials continue working with OpenAI to "strengthen UK compute capacity" despite the pause.
OpenAI and Nscale remain in discussions about the project's future, with the company stating it will proceed when "right conditions such as regulation and the cost of energy" enable long-term infrastructure investment.

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OpenAI pauses UK Stargate project

OpenAI is pausing its UK data center project, citing high energy costs and regulatory conditions. The multibillion-dollar Stargate project is part of the ChatGPT maker’s expanding AI infrastructure buildout, but the pullback marks a blow to Prime Minister Keir Starmer’s efforts to make the UK a global AI hub. One opposition lawmaker called it a “wake-up call” for the government. The pause also reflects a shift in OpenAI’s investment strategy: Th…

3 hours ago·New York, United States

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Australian Financial Review

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OpenAI pauses Stargate UK data centre in blow to Australian partner

The AI giant had planned to work on the project with Nvidia and Australian-founded data centre developer Nscale but blamed high energy costs and red tape.

8 hours ago·Sydney, Australia

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