Grey Havoc
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OpenAI’s plans to bring its $500bn (£378bn) data centre programme to Britain have stalled, raising fresh scrutiny over Sir Keir Starmer’s artificial intelligence (AI) push.
The ChatGPT developer announced in September that it would bring its flagship Stargate scheme to Britain by teaming up with UK data centre giant Nscale.
At the time, it unveiled plans to potentially house around 8,000 Nvidia AI processors at a data centre in Cobalt Park, Tyneside, during the first three months of 2026.
However, the project has yet to go live.
It is not clear why the data centre has been delayed, but commercial negotiations remain live. OpenAI declined to give an updated timeline for the facility.
Sam Altman, OpenAI’s chief executive, first revealed plans for its $500bn Stargate data centre investment programme in January 2025 during a White House press conference alongside Donald Trump.
This was followed by a pledge to expand the programme to build data centres around the world, including the UK.
In a government press release, Mr Altman said Stargate UK was part of a “shared vision that with the right infrastructure in place, AI can expand opportunity for people and businesses across the UK”.
This was championed by the Government, which has put AI at the heart of its growth push.
Meanwhile, OpenAI hired George Osborne, the former Conservative chancellor, to lead its international expansion.
However, in the US, talks over OpenAI’s data centre programme have progressed slowly with investors, including key backer SoftBank.
A plan to expand the capacity of a key site in Texas, which is still in development with US data giant Oracle, was also dropped earlier this year, according to Bloomberg.
While tech giants have revealed plans to spend hundreds of billions of dollars this year on data centres to meet demand for AI apps, many of their projects are facing delays.
Up to 50pc of large data centres have fallen behind schedule, according to an analysis by Sightline Climate, held up by planning problems or energy constraints.
Last week, The Telegraph reported that Nscale, a $15bn data centre business which features the former UK deputy prime minister Sir Nick Clegg on its board, had been forced to push back its timelines for another project in Loughton, Essex.
Tom Hegarty, a spokesman for the campaign group Foxglove, which has lobbied against a surge in data centre developments over their climate impact, said: “Sam Altman’s flagship Stargate UK project exists as little more than a colourful eight-month-old press release.”
A government spokesman said: “Our focus is on creating the right conditions for investment in the UK’s AI and data centre infrastructure, and we are working with OpenAI and other leading AI companies to strengthen UK compute capacity.”
OpenAI and Nscale declined to comment.