OpenAI and SoftBank Eye UK Expansion for $500bn Stargate AI Project

UK Emerges as Key Candidate in Global Data Centre Race

OpenAI and SoftBank are considering the UK as a future investment hub for their ambitious $500 billion Stargate AI infrastructure project. The venture, which aims to support the next generation of artificial intelligence models with massive data centre capacity, is currently focused on its US rollout but has set its sights on international expansion.

Sources close to the project say the UK is a top contender, thanks to the government’s growing support for the AI sector — especially its plans to improve energy access for developers.

Stargate’s $500bn Global Vision

Unveiled earlier this year by US President Donald Trump, Stargate is a mega infrastructure initiative designed to strengthen the American AI ecosystem. The project is initially raising $100 billion, with plans to increase investment to $500 billion over the next four years.

The first data centre is under construction in Abilene, Texas, with other US sites under review. While the focus remains firmly on building US capacity first, international expansion is firmly on the table once the domestic phase is established.

“We want to go where the compute is,” said one person involved, noting that the UK, France and Germany are strong international candidates.

UK Government’s AI Push Sparks Interest

Prime Minister Sir Keir Starmer’s administration is actively promoting the UK as a global AI leader. Recent initiatives include the creation of an AI Energy Council, designed to address developer concerns over slow grid connections and high energy costs — both critical issues for powering large-scale data centres.

Stargate insiders confirmed that the UK’s efforts to improve energy infrastructure have significantly boosted its appeal.

“This could be a really great opportunity to encourage that investment to happen,” said one individual involved in Stargate’s spending plans.

OpenAI also confirmed that the UK is among its most important non-US markets.

Investment Backed by SoftBank, Private Equity

Stargate is still in the process of raising its initial $100 billion. Financial backing is led by Japan’s SoftBank, which plans to contribute tens of billions through a mix of debt and equity. Discussions are also ongoing with private equity firms, insurers, and large institutional investors.

Once operational, Stargate will initially serve OpenAI exclusively, with plans to expand its services more broadly across the tech sector.

Tariffs Could Challenge Global Growth

Despite its ambition, Stargate — and the wider AI infrastructure sector — faces hurdles. Trump’s new 145% tariff on Chinese imports could drive up costs for data centre development in the US, adding an estimated $11 billion annually to infrastructure expenses, according to supply chain analysts at Altana.

This supply chain disruption adds further incentive for Stargate to diversify its international footprint — making the UK, with its stable trade ties and policy incentives, an increasingly attractive option.

Sources: (FT.com, ChatGPT)