OpenAI, NVIDIA to Invest Billions in UK Data Center

OpenAI and NVIDIA are set to announce a significant investment in a data center in the United Kingdom during the upcoming week. This announcement is expected to coincide with a visit by a delegation of high-ranking U.S. executives, including the CEOs of both companies, to the UK. The investment is part of a broader initiative to support the development of generative AI infrastructure in the region.

The collaboration involves Nscale Global Holdings Ltd., a London-based data center company. OpenAI and NVIDIA are working closely with Nscale to execute this project, which aims to bolster the UK's data center capabilities. The investment is anticipated to be in the range of tens of billions of dollars, with OpenAI contributing a substantial portion of this amount. The total investment by U.S. companies during the visit is expected to reach hundreds of billions of dollars.

This move aligns with the broader call from European political and business leaders to increase investment in AI-supporting infrastructure. In January, the UK Prime Minister announced a plan to accelerate AI development through investments in data centers and chips. The plan also includes the creation of "AI growth zones" to facilitate faster approvals and grid connections for data centers.

OpenAI, the developer of ChatGPT, is expanding its commercial operations in Europe, where it faces stricter regulations and greater scrutiny of Silicon Valley technology. In May, OpenAI launched the "OpenAI for Countries" initiative, aiming to extend its flagship Stargate data center project internationally. In July, OpenAI announced that it would be the primary client of a new data center in Norway, built by Nscale and funded by the Norwegian investment company Aker ASA.

Nscale, established in May 2024, has already committed to investing 2.5 billion dollars in the UK data center industry over the next three years. This includes the acquisition of a site in Loughton, Essex. In January, Nscale announced that the Loughton site could accommodate up to 45,000 of NVIDIA's GB200 superchips, designed specifically for AI. In April, it was reported that Nscale was seeking to raise 2.7 billion dollars to build AI infrastructure in collaboration with ByteDance.

OpenAI's investment in Europe is relatively modest compared to its commitments in other regions. For instance, its first international division in the United Arab Emirates promised 5 gigawatts of capacity. Earlier reports indicated that the Stargate project in the U.S. aims for a 4.5 gigawatt capacity, with OpenAI and its partners, including SoftBank Group and Oracle, committing up to 500 billion dollars for this initiative.