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Editor’s Note: Stargate Norway is more than a new data center — it is a test case for aligning advanced AI infrastructure with renewable energy, regional economic benefit, and European jurisdictional compliance. For professionals in cybersecurity, information governance, and eDiscovery, the facility’s combination of scale, local hosting, and sustainability provides both operational advantages and regulatory confidence. The Nscale-Aker joint venture, with OpenAI as the anchor customer under its “OpenAI for Countries” program, underscores a growing recognition that AI capacity is not just a technological asset but a strategic resource. Kvandal’s surplus hydropower and industrial readiness make it a compelling location to watch as Europe accelerates its AI ambitions.

Industry News – Artificial Intelligence Beat

Europe’s AI Future Takes Shape in Kvandal with Stargate Norway

ComplexDiscovery Staff

The Arctic wind may be cold in Kvandal, but the data that will soon flow through its networks will run hotter than anything the region has ever seen. In this quiet northern Norwegian community, a new kind of industrial facility is rising — one designed to deliver vast artificial intelligence capacity while keeping sustainability at its core.

Stargate Norway is being developed through a 50/50 joint venture between Nscale and Aker, with OpenAI as the anchor customer rather than an owner. This “AI gigafactory” is planned as one of Europe’s largest AI data center facilities, pairing high-performance computing infrastructure with Northern Norway’s abundant renewable energy resources. The first phase represents an initial $1 billion joint investment from the two companies, with additional investment expected as the facility expands in future phases.

Kvandal, located just outside Narvik, was chosen for its surplus hydropower, strong transmission grid, and readiness to support industrial projects of this scale. The region generates more renewable electricity than it consumes, allowing large-scale compute operations to be powered entirely by clean energy without drawing capacity away from local needs.

The initial operational build-out will provide 230 megawatts of capacity, with engineering provisions to expand up to 520 megawatts as demand for AI processing grows. Plans call for the installation of up to 100,000 NVIDIA GPUs by 2026, with room for further expansion based on market demand and technological upgrades.

Cooling efficiency is a central part of the site’s design. A closed-loop liquid cooling system will deliver heat directly away from high-density compute racks, enabling much lower energy use for temperature control. The recovered heat will be directed into local heating networks and nearby industrial processes, turning a byproduct of AI computation into a regional energy asset.

OpenAI’s role in the project is to serve as the primary initial customer under its “OpenAI for Countries” program, leveraging the facility’s compute resources to support AI development. This global initiative aims to partner with nations to build local AI infrastructure while ensuring the benefits of AI reach diverse regions. The arrangement enables OpenAI to expand its infrastructure footprint in Europe while leaving the construction, ownership, and operation of the site to the Nscale-Aker joint venture.

The strategic value of Stargate Norway lies in its ability to provide large-scale AI compute within Europe’s jurisdiction. This is particularly relevant for sectors where data handling and processing must remain compliant with European legal frameworks.

For cybersecurity teams, the ability to access high-performance AI systems hosted within Europe supports advanced threat detection, real-time analysis, and secure data workflows without the risks associated with moving sensitive information outside the region.

For information governance professionals, the location of the facility ensures AI-powered data processing can remain fully aligned with the General Data Protection Regulation (GDPR) and related European digital sovereignty requirements.

For eDiscovery practitioners, proximity to massive compute resources enables faster and more accurate analysis in large-scale legal matters. The ability to conduct these operations entirely within a European infrastructure environment also simplifies compliance with court orders and regulatory mandates governing data location.

Economically, the facility is expected to bring both direct and indirect benefits to the region. Beyond the jobs created during construction and operation, its integration with local energy systems — particularly heat reuse — positions it as part of Northern Norway’s broader low-carbon industrial ecosystem.

Stargate Norway demonstrates that large-scale AI infrastructure can be built in a way that aligns advanced technology with renewable energy strategies. By pairing vast processing capacity with sustainable power sources and by situating it in a region ready to support industrial-scale compute, the project offers a tangible model for future developments.

As construction advances, Kvandal is poised to become one of Europe’s key locations for AI infrastructure. And when the Arctic wind moves across the valley in the years ahead, it will carry more than cold air. It will carry the steady hum of servers and the pulse of GPUs, a signal that in this small Norwegian community, the foundations for Europe’s AI future are not only being envisioned — they are being built.

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Source: ComplexDiscovery OÜ

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Photo of Alan N. Sutin Alan N. Sutin

Alan N. Sutin is Chair of the firm’s Technology, Media & Telecommunications Practice and Senior Chair of the Global Intellectual Property & Technology Practice. An experienced business lawyer with a principal focus on commercial transactions with intellectual property and technology issues and privacy

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Alan N. Sutin is Chair of the firm’s Technology, Media & Telecommunications Practice and Senior Chair of the Global Intellectual Property & Technology Practice. An experienced business lawyer with a principal focus on commercial transactions with intellectual property and technology issues and privacy and cybersecurity matters, he advises clients in connection with transactions involving the development, acquisition, disposition and commercial exploitation of intellectual property with an emphasis on technology-related products and services, and counsels companies on a wide range of issues relating to privacy and cybersecurity. Alan holds the CIPP/US certification from the International Association of Privacy Professionals.

Alan also represents a wide variety of companies in connection with IT and business process outsourcing arrangements, strategic alliance agreements, commercial joint ventures and licensing matters. He has particular experience in Internet and electronic commerce issues and has been involved in many of the major policy issues surrounding the commercial development of the Internet. Alan has advised foreign governments and multinational corporations in connection with these issues and is a frequent speaker at major industry conferences and events around the world.

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