CEO's Column
Search
More
AI Investments

Stargate Eyes UK as Potential Site for $500 Billion AI Data Center Expansion

ByRishabh Srihari
2025-04-17.3 months ago
Stargate Eyes UK as Potential Site for $500 Billion AI Data Center Expansion
Stargate considers UK for next phase of its $500B AI data center project, drawn by pro-innovation policies and growing infrastructure to support global AI leadership.

The massive Stargate AI infrastructure project, backed by SoftBank, OpenAI, and Oracle, is reportedly considering the United Kingdom as a possible site for future expansion. Originally announced as a $500 billion investment in U.S.-based AI data centers, Stargate is now exploring international locations to support its growing needs.

UK Emerges as a Strong Contender

According to the Financial Times, the UK joins Germany and France as one of the top candidates for the next phase of Stargate’s development. The interest is largely driven by recent efforts by the UK government to position itself as a global AI leader.

Prime Minister Keir Starmer has pledged a pro-innovation stance, including improved access to electricity for data centers. His administration also plans to open public datasets to researchers and designate special zones for data center construction.

Also read: OpenAI to Retire GPT-4 from ChatGPT, Replacing It with Advanced GPT-4o Model

These policy moves are intended to boost the country's AI capabilities and attract major tech investments. The UK’s infrastructure plans could help support the scale and power demands of large AI models.

Stargate’s Global Ambitions

SoftBank and OpenAI previously announced their intention to invest up to $500 billion in U.S.-based AI infrastructure over the next four years. The investment, first revealed in January, was supported by then-President Donald Trump and framed as a major push to secure AI leadership on a global scale.

In February, OpenAI CEO Sam Altman hinted at possible European expansion, stating his interest in developing a Stargate-style initiative in Europe. The move would help OpenAI meet increasing global demand for its AI technologies.

AI Sector Growth Fuels Demand for Infrastructure

The rise of generative AI tools and intelligent agents has accelerated demand for computing power. This trend has prompted leading tech firms to prioritize data center expansion. The Stargate project is seen as a key driver in building the backbone for the next era of AI.

As discussions continue, the final decision on Stargate’s next location will depend on energy availability, regulatory support, and long-term strategic goals.

Related Topics

AI Investments

Subscribe to NG.ai News for real-time AI insights, personalized updates, and expert analysis—delivered straight to your inbox.