ChatGPT inventor OpenAI, Norwegian industrial group Aker and London-based AI infrastructure provider Nscale have announced plans to build “Stargate Norway”, OpenAI’s first European gigafactory.

When finished in 2026, it will run 100,000 Nvidia graphics chips, powered by renewable energy.

Nscale will lead the design, construction and operations of Stargate, and ownership will be split equally with Aker, with each committing about $500m for the initial 20MW phase, including $250m in equity.

OpenAI will be the first customer, securing a portion of the computing power for its own work, with the option to expand its share over time.

The centre will be located in Kvandal, near Narvik in the north of the country. OpenAI was attracted to this site by its access to hydropower, as well as its cool climate and industrial infrastructure.

The hope is that this will keep the plant’s energy consumption to 230MW, although there are plans to add a further 290MW in the future. Waste heat will be supplied to local businesses.

The facility will focus on serving public institutions, startups, research groups, and companies in northern Europe.

Sam Altman, the chief executive of OpenAI, commented: “I’ve always said we’d love to bring Stargate to Europe if the conditions are right, and we think we’ve found that in Narvik with clean, affordable energy, ideal climate and great partners in Nscale and Aker. Stargate Norway will help provide the compute power to drive the next wave of AI breakthroughs and economic progress for Europe, in Europe.”

The announcement comes as OpenAI ramps up global investment. The company has doubled its annual revenue target to $12bn, and ChatGPT now has around 700 million weekly active users.

Stargate will be OpenAI’s first European project under its Stargate infrastructure platform. The company has already completed a similar project in the UAE. It is also planning a major US datacentre as a joint venture with Japan’s SoftBank, with each partner set to invest $18b. Ohio and Nevada are being considered as locations.

To fund its expansion plans, OpenAI is launching a funding round with a target of $40bn. The company has already raised $10bn and is reportedly in final talks for the remainder with backers including SoftBank, Sequoia Capital, Tiger Global, Dragoneer, and Founders Fund.