US EditionOpenAI pauses UK data centre deal over energy costs and regulation
OpenAI said the project will resume only when regulation and energy costs support long-term investment, as the UK seeks to expand AI capacity.
- 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.
59 Articles
59 Articles
OpenAI Freezes UK AI Data Center Plans Over Power Prices, Red Tape
OpenAI's broader Stargate push to build next-generation AI infrastructure in the UK has been put on hold, with the company citing regulatory conditions and high energy costs as major obstacles to long-term investment. That outcome is hardly surprising: Britain, like much of dying Europe, has layered on regulatory burdens, while years of backfiring ‘green’ energy policies have left power costs structurally elevated. It’s a toxic mix for power-hun…
OpenAI Pauses U.K. Stargate Over "Regulation And Power Costs"
OpenAI Pauses U.K. Stargate Over "Regulation And Power Costs" OpenAI's broader Stargate push to build next-generation AI infrastructure in the UK has been put on hold, with the company citing regulatory conditions and high energy costs as major obstacles to long-term investment. That outcome is hardly surprising: Britain, like much of dying Europe, has layered on regulatory burdens, while years of backfiring 'green' energy policies have left pow…
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