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OpenAI Halts UK AI Hub, Threatening £30bn Growth Zone

7/5/2026

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Story summary
  • OpenAI paused the Stargate UK AI datacentre project in April 2026 because of regulation and high energy costs.
  • The government said the AI growth zone could attract £30 bn, including a £10 bn pledge from Blackstone.
  • Conservative leader John Johnsson warned that limited grid capacity and costly power made the project unlikely.
  • A taskforce co-chaired by the technology secretary and North East mayor Kim McGuinness targets 1.1 GW capacity, with over 400 MW by 2028.