Microsoft Secures Norway AI Capacity After OpenAI Exit

Microsoft has expanded its partnership with UK-based AI cloud provider Nscale to secure computational capacity at a major data center in Narvik, Norway, after OpenAI abandoned negotiations for the site. The facility, part of the previously announced Stargate Norway project, will add more than 30,000 Nvidia Rubin GPUs to Microsoft's infrastructure, with operations set to begin in 2026 under a five-year agreement powered entirely by renewable energy sources.

The 230-megawatt campus, located above the Arctic Circle, was originally envisioned as Europe's first AI gigafactory when OpenAI, Nscale, and Norwegian firm Aker announced the initiative in July 2024. OpenAI had been in talks to lease roughly half the capacity as the initial customer, aiming to install up to 100,000 GPUs overall. However, those discussions collapsed, prompting Microsoft to step in and broaden its existing arrangement with Nscale at the site.

OpenAI, which has been scaling back its ambitious infrastructure plans, confirmed it will access compute from the Narvik facility indirectly through Microsoft. A company spokesperson stated, "We are moving ahead with our plans in Norway. Microsoft is an important partner...