OpenAI halts UK data center agreement due to high energy costs and regulations. 1 day ago. Liv McMahon, technology reporter. Zoe Kleinman ist die Technologie-Redakteurin. Was ist denn los? OpenAI, the company behind ChatGPT, is halting a multibillion-pound UK data center initiative intended to expand its AI infrastructure, due to worries over elevated energy prices and regulatory hurdles. The Stargate UK project featured a major data center in northeast England and the provision of thousands of high-performance AI chips through a collaboration with Nvidia and Nscale. This deal was part of a broader £31bn UK tech investment package, hailed as evidence of the nation’s path to becoming an “AI superpower.” However, an OpenAI spokesperson announced Thursday that the project will proceed only when “right conditions” allow for “long-term infrastructure investment.” “We see huge potential for the UK’s AI future.” London hosts our biggest international research center, and we back the government’s goal to lead in AI,” an OpenAI spokesperson stated. “AI computing is essential to achieving that—we’re still evaluating Stargate UK and will proceed once suitable conditions like regulations and energy costs support sustainable infrastructure investments,” they continued. In September, when unveiling its UK data center initiative, OpenAI noted it would enhance the UK’s “sovereign compute capabilities” and advance its domestic AI efforts. “This will fuel the UK’s future economy, enhance its global edge, and fulfill the national AI Opportunities Action Plan,” the firm stated. The Stargate UK project at Cobalt Park in North Tyneside is far smaller than OpenAI’s US Stargate effort, which pledges $500bn over four years for new AI infrastructure. Yet Thursday’s announcement could disappoint the government, which has promoted domestic tech and AI growth to drive economic expansion. Technology Secretary Liz Kendall remarked in a January speech that the UK’s AI industry has expanded 23 times quicker than the overall economy. A government spokesperson highlighted that the UK’s AI sector has drawn over £100bn in private funding since the administration took power, creating jobs and opportunities. “We’re prioritizing the conditions needed for investment in UK AI and data center infrastructure. We’re collaborating with OpenAI and other top AI firms to expand UK compute capacity.” OpenAI stated it would keep investing in talent and growing its UK footprint, while fulfilling government pledges on deploying advanced AI systems in UK public services. How big tech does business. The US tech giant cites energy costs and regulatory hurdles as reasons, but neither issue is particularly novel. Even prior to the Iran war driving up prices, Britain’s energy rates had long exceeded those in the US. The UK’s AI regulations have remained largely unchanged too. That said, OpenAI’s decision also mirrors how big tech operates. Earlier this week, the firm proposed “initial” policies, such
