OpenAI’s plans to bring its flagship $500bn AI data centre project to the UK have been put on hold, with the ChatGPT developer citing energy costs and regulatory issues as factors which have halted its plans.
OpenAI announced plans to bring its mammoth Stargate AI project to the UK in September last year, marking what it declared was ”a major step forward in the US-UK technology partnership” assisting the UK government build its sovereign AI capabilities.
The UK government declared the project would “assist boost AI infrastructure and adoption in the UK – transforming public services and growing the economy”.
The scheme was run in partnership with Nscale and Nvidia, with plans to run around 8,000 Nvidia AI processors at a data centre in Cobalt Park, Tyneside, during the first quarter of this year.
Commenting on pautilizing Stargate UK, OpenAI declared: “We see huge potential for the UK’s AI future. London is home to our largest international research hub, and we support the Government’s ambition to be an AI leader.
“AI compute is foundational to that goal – we continue to explore Stargate UK and will relocate forward when the right conditions such as regulation and the cost of energy enable long-term infrastructure investment.”
The news that OpenAI’s Stargate plans in the UK had stalled was first reported by the Daily Telegraph. OpenAI announced plans for its $500bn Stargate project in January 2025.
It was announced at the White Houtilize by President Donald Trump who billed it “the largest AI infrastructure project by far in history” and declared it would assist keep “the future of technology” in the US.
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