OpenAI has halted plans for a multi-billion pound data centre development in the North East, known as the Stargate UK project. The company cited concerns regarding regulation and energy costs as the primary reasons for the pause.
The project was announced last year as a partnership between OpenAI, Nscale, and NVIDIA. It was intended to support the adoption of artificial intelligence in Britain and create thousands of jobs. As part of a wider £30 billion AI Growth Zone in the region, Nscale was expected to produce thousands of computer chips at the Cobalt Park business hub in Newcastle for OpenAI.
The company has stated that it is currently assessing market conditions before deciding how to proceed with the infrastructure investment.
In a widely reported statement, an OpenAI spokesperson said: “We see huge potential for the UK’s artificial intelligence future. London is home to our largest international research hub, and we support the Government’s ambition to be an artificial intelligence leader. We continue to explore Stargate UK and will move forward when the right conditions, such as regulation and the cost of energy, enable long-term infrastructure investment.”
The Stargate UK project was designed to work alongside a previously announced £10,000,000,000 data centre by Blackstone QTS in Cambois, near Blyth. Officials had indicated that the AI Growth Zone would help increase productivity in manufacturing, healthcare, and energy sectors.
Speaking at the time of the initial announcement, technology secretary Liz Kendall said: “The North East’s industrial legacy is evolving into a future of innovation, unlocking a potential £30 billion and powering communities with the skills and careers to lead the UK’s next industrial revolution.”
Image source: Cobalt Park
