OpenAI Abandons Direct Rental Plans for Norway Data Center as Microsoft Expands Role

OpenAI has abandoned its plans to rent compute capacity directly from a data center in Norway. The facility, located in Narvik, is operated by UK-based AI cloud company Nscale and is part of a planned 230MW infrastructure project. K.

project announced days earlier. Microsoft will take over the spare capacity previously allocated for OpenAI at the Stargate Norway facility. An OpenAI spokesperson stated that the company is in discussions with Microsoft to rent the compute capacity.

This arrangement aligns with existing contracts between the two companies. >"We are moving ahead with our plans in Norway," an OpenAI spokesperson told CNBC. " The data center project involves deployment of more than 30,000 Nvidia Rubin GPUs.

Nscale announced that Microsoft is expanding its agreement at the Narvik campus. , Norway, and other locations.

Background on the Project In 2025, OpenAI had the opportunity to serve as an initial offtaker at the data center.

The project fell under OpenAI's broader Stargate infrastructure initiative. Discussions involved OpenAI potentially renting about half of the facility's capacity, according to a source with knowledge of the matter. No agreement was reached between OpenAI and Nscale on the offtake deal.

OpenAI's spokesperson declined to comment on the specific amount of capacity discussed. The company noted that renting through Microsoft makes financial sense and fits within contracted spending. OpenAI referenced its October announcement of a contract to purchase $250 billion in services from Azure, Microsoft's cloud-computing division.

This partnership provides OpenAI with access to compute resources in various global locations.

Recent Developments and Financial Context Nscale stated that the expansion with Microsoft ensures access to advanced AI infrastructure for customers in Europe.

Jon Tinter, president of business development and ventures at Microsoft, commented on the agreement. He said it addresses growing demand for AI capabilities. OpenAI has adjusted its infrastructure plans amid rising costs.

K. Stargate project last week, citing energy costs and regulatory factors. In March, OpenAI shuttered its video generation service Sora. Funding for OpenAI remains strong. In March, the company closed a $122 billion funding round at a post-money valuation of $852 billion.

Earlier, OpenAI outlined plans for approximately $600 billion in total compute spending by 2030. These adjustments occur as OpenAI considers a potential initial public offering this year. The company has tempered expectations around its spending plans.

Infrastructure investments announced in 2025 included significant commitments over several years.