OpenAI pauses its UK Stargate project with Nvidia and Nscale, citing high energy costs and regulatory uncertainty

OpenAI has halted its planned Stargate UK infrastructure project, a partnership with Nvidia and Nscale that aimed to deploy up to 8,000 GPUs in Britain beginning in Q1 2026 with potential expansion to 31,000 GPUs over time. The company cited industrial electricity costs as a key factor, with UK rates averaging around 24 pence per kilowatt-hour for medium-sized businesses and AI data centers requiring far more power than typical industrial sites. OpenAI told CNBC it continues to evaluate the project and will move forward “when the right conditions such as regulation and the cost of energy enable long-term infrastructure investment.”