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Stargate, a $500 million US data center project led by Openai and SoftBank, is considering future investments in the UK as it looks overseas to build the global infrastructure needed to support a powerful artificial intelligence model.
According to three people close to the issue, the UK has emerged as one of its biggest options amid the recent push for Keir Starmer government to turbo-charge investments in the growing AI industry.
It comes almost three months after Stargate was announced in a move praised by US President Donald Trump as a “declaration of trust in America.”
The highly-profile venture, billed as a massive infrastructure project to boost the US AI industry, has raised $100 billion to spend on AI infrastructure projects, rising to up to $500 million over the next four years. It has built a data center in Abilene, Texas, and is considering options for 16 US states.
According to those with knowledge of the planning, the project initially focuses on “getting shovels on the ground” based solely on the US. The focus is on American infrastructure, but investment in the UK is considered part of future international expansion if the project is successful.
“We want to go where computing is,” said one person involved in the project.
According to one person involved in Stargate’s spending allocation, the UK government’s plan to increase access to power in data centres has fueled the project’s profits. “This can be a really great opportunity to encourage that investment to happen,” they said.
Openai said the UK is one of the most important markets outside the US. According to anyone familiar with the issue, Stargate will initially offer an exclusive $300 million startup.
In a joint statement, Openai and Softbank said: “As announced in January, Stargate is committed to building AI infrastructure in the US with all its efforts to invest up to $500 million over the next four years.”
Earlier this month, the energy companies and major high-tech groups met British ministers as part of the government’s new AI Energy Council. Many developers and manufacturers complain that there is a long wait and high electricity prices to connect to the power grid.
Over the past few months, Openai has lobbyed the European government to ease restrictions and invest in data centre infrastructure. Last Wednesday, the European Commission announced plans to invest more in AI data centres and simplify regulations regarding AI law. This is a drastic law that regulates the most powerful AI models.
Stargate is in the process of raising its first $100 billion to invest in its data centers. SoftBank, the project’s financial lead, is expected to raise hundreds of billions of dollars as a mix of debt and fairness. It is also being discussed with private insurance companies, private equity groups and large financial services companies.
However, the huge ambitions of the project, and the wider AI data center industry, faces challenges from Trump’s new tariff system, which has disrupt supply chains and has raised the price to import the various components needed for data centers.
According to an analysis by Altana, which maps global supply chains, Trump’s 145% tariff on China alone could face an increase of more than $11 billion in annual costs for US data center developers.
Additional Reports by Rachel Millard of London
