OpenAI pauses UK data centre project over regulation, costs

Source: Reuters

ChatGPT-maker OpenAI is pausing its main data ‌centre project in Britain over an unfavourable regulatory environment and high energy costs, dealing a blow to the UK government's push to position the country as a global AI hub.

Microsoft-backed OpenAI, which has emerged as a ​leading player following the widespread adoption of ChatGPT, said on Thursday it would proceed with ​the data centre once conditions were in place to support sustained, long-term ⁠investment.

OpenAI launched the Stargate UK project in partnership with Nvidia and Nscale last September, timed to ​coincide with U.S. President Donald Trump's visit to Britain that generated 150 billion pounds ($201.14 billion) of inward ​investment overall.

Billed by the company as a "major step" forward in the technology partnership between the two countries, the project was aimed at strengthening Britain's sovereign compute capabilities and supporting faster AI adoption in the UK.

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Read more: https://www.reuters.com/business/openai-pauses-uk-data-centre-project-over-regulation-costs-2026-04-09/