Microsoft Takes Over OpenAI's Stargate Data Centre in Norway

Microsoft Moves In on OpenAI's Arctic Data Centre

Microsoft has struck a deal to rent data centre capacity at a site in Narvik, Norway, that was originally intended for OpenAI and marketed as part of its ambitious Stargate initiative. Under the agreement, Microsoft will rent 30,000 additional Nvidia Vera Rubin chips from neocloud provider Nscale at the Arctic Circle campus, building on a prior $6.2 billion commitment Microsoft made at the same site in September 2025.

OpenAI's Unfulfilled Plans

OpenAI had been in talks for capacity at the Narvik campus but failed to conclude an agreement with Nscale. The company had branded the project "Stargate Norway" when it was announced in July 2025 as its first European data centre initiative, targeting 230 megawatts of capacity and 100,000 GPUs by the end of 2026. An OpenAI spokesperson said the company "continues to explore an agreement for capacity in Norway" and is "working with a number of partners to build up its infrastructure."

A Growing Pattern

The Norway deal follows a pattern of Microsoft moving quickly to secure AI infrastructure that OpenAI has left on the table. In late March, Microsoft agreed to take over a data centre project in Abilene, Texas, originally developed for OpenAI and Oracle, adding 900 megawatts of capacity through developer Crusoe. Last week, OpenAI also paused its Stargate project in the United Kingdom, citing high energy costs and an unfavourable regulatory environment.

The Infrastructure Arms Race

The Narvik campus is a joint venture between Nscale and Norwegian industrial firm Aker, which each committed roughly $1 billion to the project's initial phase. Nscale, valued at $14.6 billion following a $2 billion Series C round earlier this year backed by Nvidia, Dell, and Nokia, has emerged as a key intermediary in the AI infrastructure buildout. Wall Street expects Microsoft to spend roughly $143 billion this year on capital expenditure, largely tied to data centre development, while OpenAI told investors it would spend around $600 billion on infrastructure by 2030.