OpenAI’s Stargate UK Datacentre Project Stalls Amid Unverified Investment Claims

The UK-based Stargate UK AI datacentre project, involving OpenAI, Nscale and Nvidia, was paused in April 2026. OpenAI cited regulatory uncertainty and high energy costs. A Freedom-of-Information request shows OpenAI never visited the Cobalt Park site in North Tyneside nor met local officials.

The Guardian

Stargate UK was unveiled in 2025 after US President Donald Trump’s September London visit, amid tech deals. The government billed it as a “step forward in the partnership” and labelled Cobalt Park an “AI growth zone”.

The Guardian

The project unites OpenAI, Nscale, Nvidia, Blackstone and the UK government. Government statements projected up to £30 billion in AI-growth-zone investment: £10 billion “committed” by Blackstone for a separate datacentre and £20 billion “potential” from future partners, including OpenAI. The Cobalt Park site requires a 1.1 GW power supply, with 400 MW due in 2028.

The Guardian

OpenAI said it will resume work on Stargate UK once regulatory clarity and affordable energy are secured. The UK government affirmed its commitment to favourable conditions, citing a taskforce led by the technology secretary. Nvidia CEO Jensen Huang called the collaboration a historic chapter in US-UK tech ties. Nscale confirmed an officer visited North Tyneside, giving no meeting details.

The Guardian

Kamila Kingstone, Spotlight on Corruption, called the £20 billion “potential” estimate disingenuous, saying it merely reflects the required amount. John Johnsson, North Tyneside leader, said officials were “really, really taken aback” and warned that grid and energy costs make the project unlikely.

The Guardian

FOI data show Nvidia visited Cobalt Park; OpenAI and Nscale have no recorded site meetings, and the project lacks a confirmed grid connection, with an alternative power solution redacted. The £20 billion “potential” figure gives no detail on contributing partners.

The Guardian

> “When it was announced, we were really, really taken aback. We were surprised because we weren’t made aware of any of these discussions. All of a sudden, there’s all of this pizazz and these great big things announced,” — John Johnsson, North Tyneside leader

The Guardian

> “It is disingenuous for the government to imply that the £20bn for the AI growth zone will be forthcoming, when it reflects the amount needed,” — Kamila Kingstone, Spotlight on Corruption

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> “We see huge potential for the UK’s AI future … We continue to explore Stargate UK and will move forward when the right conditions such as regulation and the cost of energy enable long-term infrastructure investment,” — OpenAI spokesperson

The Guardian

> “a historic chapter in US-United Kingdom technology collaboration” — Jensen Huang, Nvidia CEO

The Guardian

A taskforce co-chaired by the technology secretary and Mayor Kim McGuinness aims to raise energy capacity to 1.1 GW, with 400 MW due in 2028. Blackstone’s separate datacentre proceeds; OpenAI’s involvement hinges on regulatory clarity and affordable power.

The Guardian