"OpenAI announced plans for its Stargate program, a global data center initiative valued at $500bn, to be established in the UK, specifically at Cobalt Park on Tyneside. The project aimed to house around 8,000 Nvidia AI processors by the first quarter of 2026, but that deadline has now passed without any construction starting."
"The reasons behind the delay in the UK remain unclear, although it is understood that commercial negotiations between OpenAI and Nscale are ongoing. Both parties have declined to comment on the current status of the project."
"The Stargate concept was first introduced by Sam Altman at a White House press conference, where he emphasized the importance of expanding opportunity through the right infrastructure. The UK was identified as a key location for this initiative."
"The Tyneside setback is not an isolated incident, as negotiations for Stargate's broader rollout in the United States have also been slow, with key backer SoftBank yet to finalize terms for a planned expansion in Texas."
OpenAI's plans to establish a major data center in north-east England have been halted, affecting the UK's AI growth strategy. The Stargate program, initially valued at $500bn, aimed to house 8,000 Nvidia AI processors by early 2026. However, the deadline has passed without progress, and OpenAI has not provided a new timeline. The reasons for the delay are unclear, with ongoing commercial negotiations. Similar delays are occurring in the US, where negotiations for Stargate's broader rollout are also sluggish.
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