Key facts
- OpenAI's Stargate UK datacentre project, initially touted as a major US-UK tech initiative, is facing scrutiny.
- Reports suggest OpenAI and partner Nscale did not visit the key Cobalt Park site in North Tyneside.
- Questions have been raised about the £20bn of 'potential' investment, which may have been hypothetical.
- The UK government stated the £20bn figure represented the site's total potential investment needs.
- The project was paused in April due to regulatory and energy cost concerns.
OpenAI's ambitious Stargate UK datacentre project, announced with significant fanfare as a cornerstone of US-UK AI cooperation, is facing intense scrutiny following revelations that the company appears not to have visited a key proposed site. The Guardian has reported that much of the £30bn in potential investment, including £20bn from hypothetical future partners, may have been unsubstantiated.
The project, intended to be OpenAI's largest undertaking in Britain, was paused in April, with the company citing concerns over regulation and high energy costs. However, sources suggest the initiative was largely a government public relations effort, with Nscale, a UK firm involved, reportedly caught unaware by the announcement.
Freedom of information requests indicate that only Nvidia, a maker of AI chips, appears to have visited the North East combined authority overseeing the Cobalt Park site in North Tyneside. Neither OpenAI nor Nscale are recorded as having met with local authorities there. Nscale stated its chief commercial officer visited the area, but could not confirm meetings.
The UK government has defended the £20bn figure, explaining it represented the total investment needed for the site to achieve its projected 1.1GW energy capacity. However, critics argue this framing is disingenuous, potentially creating false hope for local economic boosts. Local authorities also expressed surprise at the announcement, indicating a lack of prior coordination.
Further doubts about the project's viability stem from a lack of apparent grid connection and infrastructure to support a datacentre of this scale. A government spokesperson reiterated the commitment to developing UK AI and datacentre infrastructure, noting ongoing work and a dedicated taskforce for the North East AI growth zone.