Microsoft and Nscale have expanded their partnership with a further 30,000 Nvidia Rubin GPUs set for a data center in Narvik, Norway.

Revealed by the companies on April 14, the additional compute capacity will be delivered in 2027.

The GPUs will be housed at a 230MW data center in Kvandal, outside Narvik, northern Norway.

The site is being developed under the Aker Nscale joint venture, and was previously set to be home to OpenAI for the AI company’s “Stargate” Norway location.

OpenAI has now seemingly dropped out, and Microsoft will instead snap up the capacity. OpenAI has also pulled out from its partnership with Nscale in the UK, blaming regulations and energy prices in the country.

OpenAI’s exit from the Norway site was due to the company failing to conclude an agreement with Nscale, according to a report from Bloomberg.

Josh Payne, founder and CEO at Nscale said: “Customer demand for advanced AI infrastructure continues to accelerate across markets, and our focus is on bringing the latest technology online in the right locations and at real scale. Deployments in Narvik reflect strong demand from customers, and Nscale continues to respond with pace and relentless execution.”

Jon Tinter, president of business development and ventures at Microsoft, added: “Expanding our work with Nscale in Narvik helps ensure Microsoft customers have access to the advanced AI infrastructure they need as demand continues to grow across Europe. By bringing scalable capacity online with experienced partners like Nscale, we’re enabling the next generation of AI workloads with the latest infrastructure deployed at real-world scale.”

‍Microsoft already had an agreement with Nscale related to the site, having signed on for $6.2 billion of capacity in September 2025. How much the new agreement is worth has not been shared.

The two also have capacity agreements signed in the UK, Texas, and Portugal.

Earlier this week, the Information reported that Microsoft was ramping up its efforts to grab capacity, having previously stepped back on some projects. In March last year, the tech giant was reported to be canceling or delaying several projects – at least 2GW – globally.

According to the Information, this followed CFO Amy Hood’s decision to put a curb on spending when, at the end of 2024, spending started to exceed the $80bn budget. The publication reports that the projects left by Microsoft were rapidly taken up by competitors “to an extent not previously reported” and the company is now having to play catch-up. The company has maintained that it is set to be capacity-constrained through the end of this fiscal year, at least.

Alistair Speirs, the company’s general manager of Azure cloud infrastructure, told the Information: “Microsoft’s global infrastructure approach is built on flexibility and optionality, based on the near-term and long-term demand signals we see from customers.”