AI’s Fortress of Solitude: OpenAI picks Arctic Norway for $1B data center

OpenAI has chosen Narvik, Norway—a remote Arctic location—over traditional European tech hubs for its $1 billion Project Stargate data center, which will house 100,000 Nvidia GPUs by 2026. The surprising location choice prioritizes Norway’s abundant hydropower and low electricity costs, positioning the facility to become one of Europe’s largest AI infrastructure installations with 520MW capacity.

What you should know: OpenAI partnered with AI infrastructure firm Nscale and Norwegian industrial company Aker to build what they’re calling an “AI Gigafactory” in Northern Norway.

• The initial 20MW phase requires roughly $1 billion in investment, with plans to scale to 520MW capacity.
• The facility will run entirely on renewable energy and feature advanced closed-loop, direct-to-chip liquid cooling systems.
• Excess heat from the data center will be repurposed for local low-carbon projects.

Why Narvik over major European cities: The Arctic location offers significant operational advantages that traditional tech hubs cannot match.

• Norway provides low electricity prices, abundant hydropower, and naturally cool climate conditions ideal for data center operations.
• Narvik has underutilized transmission capacity that can accommodate heavy compute loads—something many established European data centers struggle with.
• The region’s surplus clean energy and industrial readiness make it cost-effective for massive AI infrastructure.

The big picture: This represents a strategic shift in how major tech companies approach European data center placement, prioritizing energy resources over proximity to major markets.

• OpenAI will be the primary consumer of compute power, but surplus capacity will be distributed across the UK, Nordic countries, and Northern Europe.
• The decision could reshape the geographic balance of AI development in Europe by proving that remote, energy-rich locations can effectively serve continental markets.

What they’re saying: Industry leaders emphasize the strategic importance of this unconventional location choice.

• “Announcing Stargate Norway and delivering one of the first European AI Gigafactory to market is a strategic milestone for the region and boosts its role in the global AI landscape,” said Josh Payne, CEO of Nscale.
• “Norway has a proud history of turning clean, renewable energy into industrial value, powering global industries like aluminium and fertilizer… Northern Norway, with its surplus of clean energy, available capacity, and industrial readiness, is the ideal launchpad for this transformation,” said Øyvind Eriksen, President & CEO of Aker.
• “Europe needs more compute to realize the full potential of AI for all Europeans — from developers and researchers to startups and scientists — and we want to help make that happen,” said Sam Altman, CEO of OpenAI.

Technical specifications: The planned installation positions Stargate Norway as a serious contender in high-performance computing infrastructure.

• 100,000 Nvidia GPUs will require robust CPU support and optimization for both GPU-intensive workloads and fast CPU handling.
• The facility will need substantial storage throughput capabilities to support the massive scale of operations.
• State-of-the-art cooling systems will be essential for managing the heat generated by such concentrated computing power.