OpenAI Considers UK for Stargate Data Centers as it Pivots From All-American Focus

Key Takeaways

• When Stargate was first announced, Donald Trump depicted it as an all-American project.
• However, the joint venture between OpenAI, Oracle and Softbank is reportedly considering investing in the U.K., too.
• Across Europe, governments are maneuvering to boost AI infrastructure development.

When President Donald Trump announced a $500 billion joint venture between OpenAI, Oracle and Softbank, he lauded “Stargate” as a “declaration of confidence in America.”

But as the project evolves, its initial focus on building U.S. data centers has given way to a more global infrastructure vision that could see it establish facilities in countries like the U.K., too.

Stargate Looks Beyond the U.S.

In February, Trump shared a stage with the CEOs of OpenAI, Oracle and Softbank to announce “the largest AI infrastructure project by far in history,” boasting that “it’s all taking place right here in America.”

However, according to sources cited by the Financial Times, Stargate is also considering investing in the U.K., which they said is one of OpenAI’s most important international markets.

While the main focus remains on the U.S., “we want to go where the compute is,” a person involved in the project stated.

They added that Germany and France are also attractive candidates for further infrastructure development.

Europe Plays Catchup With AI Infrastructure

The news that Stargate is weighing a European expansion comes as governments in the region have made AI infrastructure development a key strategic priority.

After Trump announced Stargate, the EU embarked on its own AI spending splurge, committing €200 billion to build new “AI Gigafactories,” among other projects.

For its part, the U.K. government has moved to boost data center development by loosening planning restrictions and proactively identifying potential sites.

Data Centers in the U.K.

Faced with an aging electrical grid and a shortage of suitable land, data center building in the U.K. has failed to keep pace with demand.

Challenges and delays have prompted warnings from the likes of Google and Microsoft, who caution that poor infrastructure threatens the competitiveness of the U.K.’s AI sector.

To remedy the situation, the government has classified data centers as a form of critical national infrastructure, granting the Home Secretary power to override local authorities who oppose new projects.

In a sign that the strategy is working, the government recently unveiled a raft of development opportunities.

Identifying a site in England’s “former industrial heartlands,” Science and Technology Secretary Peter Kyle recently declared that “this could be home to the largest data center in Europe.”

“We have no time to waste. I want shovels in the ground this year,” he added.

As Stargate looks toward a potential European expansion, the government’s sense of urgency could make the U.K. an attractive destination for investment.

Meanwhile, AI innovation hubs in London and Cambridge will ensure ample demand for additional capacity.