In its statement to Bloomberg, OpenAI announced that it has paused its Stargate UK data center project due to high industrial electricity costs and an unfavorable regulatory environment concerning AI copyright. Announced in September 2025 in partnership with Nvidia and Nscale, the project aimed to deploy 8,000 GPUs in northeast England, with plans to scale up to 31,000. OpenAI stated it will proceed ‘when the right conditions’ allow but provided no specific timeline. This pause represents a significant setback for the UK government’s AI Growth Zones initiative and coincides with OpenAI’s preparations for a public listing.
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