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“OpenAI Scales Back Stargate Again, Pauses UK Data Center Over Costs and Regulation” 🚨

OpenAI is pulling back further on its ambitious Stargate global data center initiative, pausing its planned UK expansion due to rising energy costs and regulatory challenges.

The Stargate project—originally unveiled alongside Donald Trump at the White House—was a major partnership between OpenAI, Oracle, and SoftBank aimed at building large-scale AI infrastructure across key global markets, including the UAE, the UK, and Norway.

According to reports, the UK site is now on hold as the company reassesses the economic and regulatory environment. The move follows a recent decision by OpenAI and Oracle to scrap a planned expansion of the Stargate I facility in Abilene, Texas—signaling a broader slowdown in the project’s rollout.

Despite the pause, OpenAI emphasized that it remains committed to expanding its AI infrastructure when conditions improve. “AI compute is foundational to our mission,” the company said, noting it will revisit the UK project once factors like energy pricing and regulatory clarity align with long-term investment goals.

The UK initiative, first announced in September, included collaboration with Nvidia and Nscale, with plans to deploy up to 31,000 GPUs to power next-generation AI workloads.

The scaling back of Stargate highlights the growing challenges facing global AI infrastructure projects, where soaring energy demands and complex regulations are increasingly shaping where—and how fast—companies can expand.