Microsoft (MSFT) has taken over a new data center in Narvik, Norway, that was originally planned for OpenAI’s Stargate project. The deal follows OpenAI’s failure to finalize an agreement with Nscale, a neocloud provider focused on AI infrastructure, for the site. The capacity is now redirected to Microsoft as the primary tenant.
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New trading tool for NVDA bearsMicrosoft Expands Narvik AI Capacity Deal
Microsoft agreed on April 14 to expand its agreement with Nscale at the Narvik data center campus, adding more than 30,000 Nvidia (NVDA) Rubin GPUs to its deployment. Nscale had earlier stated in March that it would support Microsoft’s rollout of Nvidia’s Vera Rubin chips across sites in the U.K., Norway, and other locations.
This move adds to Microsoft’s existing $6.2 billion commitment and includes taking over additional compute capacity previously allocated to OpenAI at the planned 230-megawatt Stargate facility. The agreement will run for five years, starting in 2026, and the compute capacity will be powered entirely by renewable energy, with the site targeting up to 100,000 Nvidia GPUs in total capacity.
OpenAI Cuts Back AI Build Plans
Microsoft has continued to expand its role in AI infrastructure, previously associated with OpenAI. Earlier in March, the firm moved to take over a separate Stargate-related project in Texas that had previously been associated with OpenAI and Oracle (ORCL).
Meanwhile, the company is expanding its data center footprint in the U.S., planning to acquire roughly 3,200 acres in Cheyenne, Wyoming. On the other hand, OpenAI has been scaling back parts of its infrastructure buildout, including suspending a similar data center project in the U.K.
The private company told investors in February it expects to spend about $600 billion on infrastructure through 2030, compared with earlier long-term projections of about $1.4 trillion. Reports now indicate OpenAI is restructuring its Stargate approach toward leasing compute capacity rather than building and operating its own facilities.
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