OpenAI has announced its European Stargate data center project for Norway.

The generative AI company will work with data center company Nscale and engineering firm Aker for an initial 230MW facility. The site could add another 290MW.

The data center will target to deliver 100,000 Nvidia GPUs by the end of 2026, with plans to expand “significantly” in the years ahead.

Located in Kvandal, outside Narvik, northern Norway, the site was announced by Aker earlier this month. Nscale also operates a data center in Glomfjord, southern Norway. The two companies will own the new site in a 50:50 joint venture.

Nscale and Aker said that they will begin preparatory steps and mobilize resources for construction. Both parties have committed around $1 billion to the initial 20MW phase of the project, including upwards of $250 million in equity.

They said that the Kvandal site has the potential to scale “tenfold” and could be used by other customers beyond OpenAI.

The Narvik data center will use local hydropower, and is expected to use closed-loop, direct-to-chip liquid cooling. Waste heat will be available for district heating.

OpenAI said that surplus capacity will be made available to public and private sector users across the UK, Nordics and, Northern Europe. The company also promised to find ways to help Norway’s national AI strategy.

“Announcing Stargate Norway and delivering one of the first European AI Gigafactory to market is a strategic milestone for the region and boosts its role in the global AI landscape,” said Josh Payne, CEO of Nscale.

“Sovereign, scalable and sustainable infrastructure is now essential to remain competitive. We’re proud to partner with Aker, drawing on the team’s extensive experience and impressive track record, to deliver a new generation of AI economic and productivity growth in Europe.”

OpenAI is also backing a Stargate in the UAE, while Nscale hopes to deploy 10,000 GPUs in the UK for its cloud service.