The colossal energy and compute demands fueling the artificial intelligence race are pushing infrastructure projects to unprecedented scales. Project Stargate, an ambitious initiative initially announced with $500 billion earmarked for U.S. AI infrastructure, is now reportedly evaluating expansion into Europe.
According to a Financial Times report, the venture – structured as a distinct new company formed by OpenAI and SoftBank Group Corp. – is considering future investments in the United Kingdom, alongside Germany and France, as it maps out the global infrastructure capacity needed for advanced AI.
This exploration marks a potential geographic widening for Stargate, whose official launch in January 2025 emphasized a domestic focus. Its powerful backing includes initial equity funding from SoftBank, OpenAI, Oracle Corp., and the UAE investment fund MGX.
SoftBank Chairman Masayoshi Son serves as the Stargate company’s chairman, with SoftBank handling financial lead while OpenAI directs operations. Key initial technology partners were named as Arm, Microsoft, NVIDIA, Oracle, and OpenAI.
While the project committed $500 billion over four years primarily for U.S. buildout – starting with 10 massive data centers already under construction in Texas as of January – the potential move overseas underscores the global scope required for next-generation AI. In a statement provided to Reuters Thursday, coinciding with the FT report, SoftBank and OpenAI reaffirmed their commitment to the U.S. investment plan, highlighting the ongoing domestic focus even as international options are weighed.
UK and Europe Emerge as Potential AI Hubs
The United Kingdom’s potential attractiveness stems partly from targeted government policy. The Starmer administration’s AI Opportunities Action Plan, aims to foster AI development through measures like “AI Growth Zones.” These zones, with a pilot designated for Culham, Oxfordshire, promise faster planning approvals and improved grid access – critical factors for power-hungry data centers. The UK plan also includes goals to significantly expand sovereign compute capacity and create a National Data Library.
The governmental push arrived alongside £14 billion in announced private digital infrastructure commitments from firms like Vantage Data Centres and Kyndryl, bolstering the investment climate.
However, international competition for hosting such large AI projects is fierce. France, also named as a Stargate candidate, announced its own substantial €109 billion AI investment strategy in February 2025, explicitly positioned by President Macron as a rival effort. Notably, France’s plan involves MGX – the same UAE fund backing Stargate – funding a 1GW AI data center, alongside major investments from Brookfield and Digital Realty.
Germany was also mentioned as a country under consideration by the Stargate partners. The interest in Europe isn’t entirely new; OpenAI CEO Sam Altman had previously signaled in February that his company would “love” to establish a “Stargate Europe.”
OpenAI’s Shifting Strategy and Infrastructure Needs
Stargate’s international considerations coincide with OpenAI’s broader strategic evolution. Following a $40 billion SoftBank-led tender offer in early April 2025, which valued OpenAI at $300 billion and made SoftBank its largest investor, the AI company has been diversifying its infrastructure. Since February 2025, reports indicated OpenAI began moving away from exclusive reliance on Microsoft’s Azure cloud, anticipating reliance on Stargate partners and other providers.
This shift is driven by massive operational demands. OpenAI reportedly lost $5 billion in 2024 and expects annual compute costs to surpass $9.5 billion by 2026. To secure resources, it inked an $11.9 billion compute deal with CoreWeave in March. Beyond GPUs, OpenAI is pursuing custom AI chip development with Broadcom and TSMC, an effort potentially aided by SoftBank’s ownership of Arm Holdings.
A SoftBank representative stated in February, “Software alone won’t be enough” to sustain AI’s growth. The complex relationship with Microsoft continues; CEO Satya Nadella asserted in January 2025 that “OpenAI APIs are exclusive to Azure going forward even… OpenAI has committed to Azure in a very significant way.”
Powering AI, Policy, and Future Directions
The enormous power requirements for projects like Stargate, estimated at 5 gigawatts or more, are spurring interest in advanced energy solutions. Both OpenAI (via Sam Altman’s personal investment and board seat) and SoftBank participated in a $425 million funding round for Helion Energy, a nuclear fusion startup targeting commercial power by 2028.
Nuclear fusion aims to generate power by fusing atomic nuclei, a process distinct from current fission reactors, potentially offering clean, dense energy if commercialized. Microsoft already has a 2023 agreement to buy power from Helion, reflecting broader tech sector interest in nuclear options, including Small Modular Reactors (SMRs).
Alongside technology, OpenAI is navigating policy, having lobbied the Trump administration for regulatory clarity and suggesting “AI Economic Zones.”
Facing competition, OpenAI also confirmed plans in April 2025 for an open-weight model release. While Stargate’s immediate future involves substantial US investment, the evaluation of sites in the UK and Europe highlights the venture’s potentially global trajectory in the escalating race for AI dominance, spurred by what Reuters called surged investor enthusiasm for the AI sector.
