OpenAI site visit questions cloud UK Stargate plans

Stargate UK, a planned multibillion-pound datacentre effort involving OpenAI, Nscale and Nvidia, was promoted as a major US-UK technology partnership during Donald Trump’s September visit to London. OpenAI paused the plans in April, citing regulation and high energy costs, and questions have since grown over whether the Cobalt Park site in North Tyneside was ready for a project of that scale.

A freedom of information request showed that neither OpenAI nor Nscale met local authorities at the site, while Nvidia visited the North East combined authority in February 2026, five months after Trump’s visit. Sources familiar with the process said the government approached Nscale and OpenAI shortly before the visit and sought a large announcement, with one describing Stargate UK as effectively a PR exercise.

The government said the AI growth zone was set to bring in £30bn in investment, including £10bn committed by Blackstone for a separate datacentre and potential for an additional £20bn in investment from future partners. In response to questions, it said the £20bn reflected the amount needed to build a datacentre and obtain computing power for the site’s 1.1GW electricity supply.

Local Conservative leader John Johnsson said authorities were surprised by the announcement and questioned whether energy costs, grid capacity and infrastructure were in place. The government said a taskforce is advancing planning, investment and skills, and that the North East AI growth zone will reach 1.1GW once fully operational, with over 400MW due in 2028.