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Stargate Norway: Pioneering AI Gigafactories in Europe

In an unprecedented collaboration, Nscale Global Holdings, Aker ASA, and OpenAI have unveiled plans for Stargate Norway, a state-of-the-art AI Gigafactory located in Narvik, Northern Norway. This facility is set to revolutionize the European AI landscape by delivering a massive 100,000 NVIDIA GPUs by the end of 2026. The project thrives on the principles of sustainability and efficiency, powered entirely by renewable energy sources.

The Vision Behind Stargate Norway

This ambitious initiative aims to create a secure, scalable, and energy-efficient infrastructure tailored to support sovereign AI workloads across Europe. With the ongoing demand for AI capabilities, the collaboration intends to position Northern Norway as a pivotal hub for advanced computational power. By leveraging the region's abundant hydropower, Stargate Norway promises to keep operational costs lower than the European average, creating a competitive edge.

Located in an area characterized by low local electricity consumption and available transmission capacity, the Gigafactory is expected to significantly contribute to the local economy by generating jobs and stimulating industrial activity. This initiative is especially vital as Europe strives to harness AI's full potential, allowing developers, researchers, and companies to access necessary computational resources.

Investment and Structure

The project will be executed through a joint venture formed by Nscale and Aker, dividing ownership equally. Each party will contribute upwards of USD 250 million in equity as part of the initial 20MW phase, with plans for subsequent expansions anticipated to increase capacity to 290MW. OpenAI's involvement as an initial offtaker establishes a notable precedent, marking the organization's inaugural data center initiative in Europe under its 'OpenAI for Countries' program.

Josh Payne, CEO of Nscale, expressed that Stargate Norway represents a significant milestone for both the region and the global AI marketplace. The synthesis of robust AI technology and local renewable energy resources sets a foundation for sustainable growth and innovation. Additionally, Aker's President, Øyvind Eriksen, emphasized the natural progression of Norway’s industrial development and its emerging role in artificial intelligence.

Eco-Friendly Operations

Sustainability is a foundational component of Stargate Norway's operational framework. The facility plans to incorporate closed-loop, direct-to-chip liquid cooling systems for improved efficiency. Moreover, any excess heat generated by GPU operations will be utilized to support low-carbon enterprises, further exemplifying the project's commitment to environmental stewardship.

Collaboration with Local Institutions

To enhance regional expertise, Stargate Norway will engage with local academic institutions, facilitating research and development in AI. This collaborative approach aims to nurture a knowledge economy and fortify Norway's growing AI ecosystem. By providing priority access to its resources, the Gigafactory will empower home-grown startups and researchers, ensuring that the benefits of advanced AI capabilities are felt locally.

Potential surplus computational capacity is expected to be accessible to various public and private sector clients, spanning across the UK, the Nordics, and other Northern European nations. This strategy not only addresses rising demands for AI services but also plays a pivotal role in fostering the broader AI development landscape in Europe.

Future Prospects

With Europe at a crossroads in AI innovation, Stargate Norway embodies a forward-thinking solution that aligns with global sustainability goals. Sam Altman, CEO of OpenAI, remarked on the necessity of expanding AI capacities to meet growing demands across various sectors. He sees the initiative as an opportunity to drive substantial breakthroughs in AI technology, fostering economic progress across Europe.

As construction phases advance, the consortium of Nscale, Aker, and OpenAI is committed to delivering not just technological capability but also long-term economic benefits to the Narvik region. The establishment of such a model for future AI infrastructure will likely set a precedent, influencing international approaches to AI development and sustainability.