OpenAI’s much-trumpeted plans to build a major data centre in the north-east of England have ground to a halt, dealing a significant blow to Sir Keir Starmer’s strategy of placing artificial intelligence at the centre of Britain’s economic growth.
The maker of ChatGPT announced last September that it would bring its Stargate programme, a global data centre initiative originally valued at $500bn (£378bn), to British shores through a partnership with Nscale, the UK-based data centre operator. The initial plan envisaged housing approximately 8,000 Nvidia AI processors at Cobalt Park on Tyneside during the first quarter of 2026. That deadline has now passed without a spade in the ground, and OpenAI has declined to offer a revised timetable.
The reasons behind the delay remain unclear, though commercial negotiations between the parties are understood to be continuing. Both OpenAI and Nscale refused to comment on the state of play.
The Stargate concept was first unveiled by Sam Altman, OpenAI’s chief executive, at a White House press conference in January 2025 alongside Donald Trump. Altman subsequently pledged to extend the programme internationally, with the UK earmarked as a key location. In a government press release at the time, he described Stargate UK as part of a “shared vision” to expand opportunity through the right infrastructure.
The project was enthusiastically embraced by ministers, who have sought to position Britain as a global leader in AI. OpenAI further signalled its commitment to the UK by appointing George Osborne, the former Conservative chancellor, to spearhead its international expansion.
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