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OpenAI pauses UK data centre project over regulation, costs
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Advertisement Business OpenAI pauses UK data centre project over regulation, costs OpenAI logo is seen in this illustration taken June 18, 2025. Click here to return to FAST Tap here to return to FAST FAST LONDON, April 9 : ChatGPT-maker OpenAI is pausing its main data centre project in Britain over an unfavourable regulatory environment and high energy costs, dealing a blow to the UK government's push to position the country as a global AI hub. OpenAI has been ramping up global investment in large-scale data centre infrastructure, working with partners such as Microsoft, Oracle and Nvidia to meet surging demand for AI compute. London is home to our largest international research hub, and we support the Government's ambition to be an AI leader," OpenAI said. "We continue to explore Stargate UK and will move forward when the right conditions such as regulation and the cost of energy enable long-term infrastructure investment," it added. ($1 = 0.7458 pounds) Source: Reuters Newsletter Week in Review Subscribe to our Chief Editor’s Week in Review Our chief editor shares analysis and picks of the week's biggest news every Saturday.
## Summary
Advertisement Business OpenAI pauses UK data centre project over regulation, costs OpenAI logo is seen in this illustration taken June 18, 2025. Click here to return to FAST Tap here to return to FAST FAST LONDON, April 9 : ChatGPT-maker OpenAI is pausing its main data centre project in Britain over an unfavourable regulatory environment and high energy costs, dealing a blow to the UK government's push to position the country as a global AI hub. OpenAI has been ramping up global investment in large-scale data centre infrastructure, working with partners such as Microsoft, Oracle and Nvidia to meet surging demand for AI compute. London is home to our largest international research hub, and we support the Government's ambition to be an AI leader," OpenAI said. "We continue to explore Stargate UK and will move forward when the right conditions such as regulation and the cost of energy enable long-term infrastructure investment," it added. ($1 = 0.7458 pounds) Source: Reuters Newsletter Week in Review Subscribe to our Chief Editor’s Week in Review Our chief editor shares analysis and picks of the week's biggest news every Saturday.
## Article Content
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OpenAI pauses UK data centre project over regulation, costs
OpenAI logo is seen in this illustration taken June 18, 2025. REUTERS/Dado Ruvic/Illustration
09 Apr 2026 09:52PM
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LONDON, April 9 : ChatGPT-maker OpenAI is pausing its main data centre project in Britain over an unfavourable regulatory environment and high energy costs, dealing a blow to the UK government's push to position the country as a global AI hub.
Microsoft-backed OpenAI, which has emerged as a leading player following the widespread adoption of ChatGPT, said on Thursday it would proceed with the data centre once conditions were in place to support sustained, long-term investment.
OpenAI launched the Stargate UK project in partnership with Nvidia and Nscale last September, timed to coincide with U.S. President Donald Trump's visit to Britain that generated 150 billion pounds ($201.14 billion) of inward investment overall.
Billed by the company as a "major step" forward in the technology partnership between the two countries, the project was aimed at strengthening Britain's sovereign compute capabilities and supporting faster AI adoption in the UK.
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Sovereign compute refers to a country's capacity to develop and control its own AI infrastructure.
OpenAI has been ramping up global investment in large-scale data centre infrastructure, working with partners such as Microsoft, Oracle and Nvidia to meet surging demand for AI compute.
When asked about the company's decision to pause the UK phase of the project, a government spokesperson said it was continuing to work with OpenAI and other leading AI companies "to strengthen UK compute capacity".
Prime Minister Keir Starmer, trailing in opinion polls ahead of a national election due by 2029, has placed AI at the centre of his growth strategy to attract international investment and reinvigorate a stagnant economy.
Last year, Starmer pledged to take a pro-innovation approach to regulation, which Microsoft has also criticised in the past, along with plans to make public data available to researchers and create zones for data centres.
"We see huge potential for the UK's AI future. London is home to our largest international research hub, and we support the Government's ambition to be an AI leader," OpenAI said.
"We continue to explore Stargate UK and will move forward when the right conditions such as regulation and the cost of energy enable long-term infrastructure investment," it added.
($1 = 0.7458 pounds)
Source: Reuters
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## Expert Analysis
### Merits
- Last year, Starmer pledged to take a pro-innovation approach to regulation, which Microsoft has also criticised in the past, along with plans to make public data available to researchers and create zones for data centres. "We see huge potential for the UK's AI future.
### Areas for Consideration
- CNA Games Guess Word Crack the word, one row at a time Buzzword Create words using the given letters Mini Sudoku Tiny puzzle, mighty brain teaser Mini Crossword Small grid, big challenge Word Search Spot as many words as you can Show More Show Less Sovereign compute refers to a country's capacity to develop and control its own AI infrastructure.
### Implications
- Advertisement Business OpenAI pauses UK data centre project over regulation, costs OpenAI logo is seen in this illustration taken June 18, 2025.
- Last year, Starmer pledged to take a pro-innovation approach to regulation, which Microsoft has also criticised in the past, along with plans to make public data available to researchers and create zones for data centres. "We see huge potential for the UK's AI future.
- London is home to our largest international research hub, and we support the Government's ambition to be an AI leader," OpenAI said. "We continue to explore Stargate UK and will move forward when the right conditions such as regulation and the cost of energy enable long-term infrastructure investment," it added. ($1 = 0.7458 pounds) Source: Reuters Newsletter Week in Review Subscribe to our Chief Editor’s Week in Review Our chief editor shares analysis and picks of the week's biggest news every Saturday.
### Expert Commentary
This article covers openai, fast, data topics. Notable strengths include discussion of openai. Areas of concern are also raised. Readability: Flesch-Kincaid grade 0.0. Word count: 622.
Advertisement Business OpenAI pauses UK data centre project over regulation, costs OpenAI logo is seen in this illustration taken June 18, 2025. Click here to return to FAST Tap here to return to FAST FAST LONDON, April 9 : ChatGPT-maker OpenAI is pausing its main data centre project in Britain over an unfavourable regulatory environment and high energy costs, dealing a blow to the UK government's push to position the country as a global AI hub. OpenAI has been ramping up global investment in large-scale data centre infrastructure, working with partners such as Microsoft, Oracle and Nvidia to meet surging demand for AI compute. London is home to our largest international research hub, and we support the Government's ambition to be an AI leader," OpenAI said. "We continue to explore Stargate UK and will move forward when the right conditions such as regulation and the cost of energy enable long-term infrastructure investment," it added. ($1 = 0.7458 pounds) Source: Reuters Newsletter Week in Review Subscribe to our Chief Editor’s Week in Review Our chief editor shares analysis and picks of the week's biggest news every Saturday.
## Article Content
Advertisement
Business
OpenAI pauses UK data centre project over regulation, costs
OpenAI logo is seen in this illustration taken June 18, 2025. REUTERS/Dado Ruvic/Illustration
09 Apr 2026 09:52PM
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LONDON, April 9 : ChatGPT-maker OpenAI is pausing its main data centre project in Britain over an unfavourable regulatory environment and high energy costs, dealing a blow to the UK government's push to position the country as a global AI hub.
Microsoft-backed OpenAI, which has emerged as a leading player following the widespread adoption of ChatGPT, said on Thursday it would proceed with the data centre once conditions were in place to support sustained, long-term investment.
OpenAI launched the Stargate UK project in partnership with Nvidia and Nscale last September, timed to coincide with U.S. President Donald Trump's visit to Britain that generated 150 billion pounds ($201.14 billion) of inward investment overall.
Billed by the company as a "major step" forward in the technology partnership between the two countries, the project was aimed at strengthening Britain's sovereign compute capabilities and supporting faster AI adoption in the UK.
CNA Games
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
Show More
Show Less
Sovereign compute refers to a country's capacity to develop and control its own AI infrastructure.
OpenAI has been ramping up global investment in large-scale data centre infrastructure, working with partners such as Microsoft, Oracle and Nvidia to meet surging demand for AI compute.
When asked about the company's decision to pause the UK phase of the project, a government spokesperson said it was continuing to work with OpenAI and other leading AI companies "to strengthen UK compute capacity".
Prime Minister Keir Starmer, trailing in opinion polls ahead of a national election due by 2029, has placed AI at the centre of his growth strategy to attract international investment and reinvigorate a stagnant economy.
Last year, Starmer pledged to take a pro-innovation approach to regulation, which Microsoft has also criticised in the past, along with plans to make public data available to researchers and create zones for data centres.
"We see huge potential for the UK's AI future. London is home to our largest international research hub, and we support the Government's ambition to be an AI leader," OpenAI said.
"We continue to explore Stargate UK and will move forward when the right conditions such as regulation and the cost of energy enable long-term infrastructure investment," it added.
($1 = 0.7458 pounds)
Source: Reuters
Newsletter
Week in Review
Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
Sign up for our newsletters
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Download here
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---
## Expert Analysis
### Merits
- Last year, Starmer pledged to take a pro-innovation approach to regulation, which Microsoft has also criticised in the past, along with plans to make public data available to researchers and create zones for data centres. "We see huge potential for the UK's AI future.
### Areas for Consideration
- CNA Games Guess Word Crack the word, one row at a time Buzzword Create words using the given letters Mini Sudoku Tiny puzzle, mighty brain teaser Mini Crossword Small grid, big challenge Word Search Spot as many words as you can Show More Show Less Sovereign compute refers to a country's capacity to develop and control its own AI infrastructure.
### Implications
- Advertisement Business OpenAI pauses UK data centre project over regulation, costs OpenAI logo is seen in this illustration taken June 18, 2025.
- Last year, Starmer pledged to take a pro-innovation approach to regulation, which Microsoft has also criticised in the past, along with plans to make public data available to researchers and create zones for data centres. "We see huge potential for the UK's AI future.
- London is home to our largest international research hub, and we support the Government's ambition to be an AI leader," OpenAI said. "We continue to explore Stargate UK and will move forward when the right conditions such as regulation and the cost of energy enable long-term infrastructure investment," it added. ($1 = 0.7458 pounds) Source: Reuters Newsletter Week in Review Subscribe to our Chief Editor’s Week in Review Our chief editor shares analysis and picks of the week's biggest news every Saturday.
### Expert Commentary
This article covers openai, fast, data topics. Notable strengths include discussion of openai. Areas of concern are also raised. Readability: Flesch-Kincaid grade 0.0. Word count: 622.
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