Stargate project, a $500 billion AI infrastructure initiative led by OpenAI, SoftBank, and Oracle, has ignited global attention since its January 2025 launch. Initially conceived as a U.S.-centric effort to secure American leadership in artificial intelligence, Stargate is now exploring expansion into Europe, with the UK, Germany, and France emerging as top contenders for future sites. This European interest signals a strategic shift toward a global AI ecosystem that could transform competitive dynamics in AI development.
Stargate’s first mega data centre broke ground in Abilene, Texas, with plans for additional U.S. sites underway. The project’s immediate focus remains on building out American infrastructure, supported by an initial $100 billion funding round, with SoftBank expected to contribute tens of billions in debt and equity. Industry experts have hailed Stargate as a “declaration of confidence in America,” underscoring its domestic significance.
Yet, as OpenAI CEO Sam Altman has publicly stated, the company “would love” to bring a Stargate-like program to Europe. Reports confirm that the consortium is evaluating the UK, Germany, and France as potential sites for expansion. However, any European move depends on the project’s successful rollout in the U.S. and continued fundraising. For now, Stargate’s leadership emphasises that its “core purpose remains building robust AI infrastructure in the United States.”
Why Europe and why now?
Europe’s allure is multifaceted. The continent boasts world-class AI research hubs, a large and sophisticated market, and governments eager to attract high-tech investment. The UK has positioned itself as a leading candidate by rolling out the AI Opportunities Action Plan, which includes streamlined planning for data centres, improved access to electricity, and new “Growth Zones” designed to attract foreign technology giants. Prime Minister Keir Starmer’s administration has made AI a strategic national priority, promising a pro-innovation regulatory approach and open access to public data for researchers.
France and Germany are also making bold moves. France secured over €100 billion in AI infrastructure commitments in early 2025, while Germany is leveraging EU projects and national AI hubs to build out its capabilities. The European Commission recently announced plans to invest more in AI data centres and to simplify rules around the sweeping EU AI Act, signalling a desire to remain competitive with U.S. and Chinese tech giants.
Europe’s competitive response and its limits
Europe is not sitting idle. The EU’s €200 billion Investai initiative and the “AI Champions” coalition aim to mobilise public and private capital for AI infrastructure, including four planned “AI gigafactories.” These efforts reflect both ambition and anxiety: Stargate’s scale dwarfs most European projects, and there is growing recognition that piecemeal investments may not be sufficient in a global race for AI supremacy.
Yet, Europe’s regulatory environment remains a double-edged sword. The EU AI Act, while pioneering, introduces compliance complexities that may slow the deployment of massive foreign-led data centres. Recent moves to streamline these rules suggest Brussels is aware of the risks of falling behind, but uncertainty remains over how quickly and flexibly the regulatory landscape can adapt.
Stargate’s potential expansion raises thorny questions for Europe: digital sovereignty, sustainability, and talent retention. Allowing a U.S.-led consortium to control critical AI infrastructure could challenge Europe’s aspirations for technological autonomy and data governance. AI data centres are voracious consumers of electricity and water. European governments and the public may resist large-scale projects unless they align with aggressive climate and energy goals.
As U.S. tech giants expand in Europe, local startups are concerned about intensified competition for scarce AI talent, which could exacerbate regional disparities.
Is Stargate a wake-up call for Europe?
Stargate’s European ambitions present both opportunities and challenges. For OpenAI and its partners, it offers market access, talent, and political momentum. For Europe, the project serves as a wake-up call: to compete effectively, it must scale up investment, streamline regulations, and resolve the tension between openness and sovereignty.
The UK, Germany, and France have emerged as desirable candidates, each offering unique advantages in government support, existing technological ecosystems, and infrastructure readiness. The potential European expansion of Stargate would enable the consortium to diversify its geographical footprint, enhancing resilience against regional disruptions and facilitating access to European data, talent, and markets.
Looking forward, the success of Stargate’s European ambitions will depend not just on favourable regulatory conditions and infrastructure readiness but also on the consortium’s ability to engage meaningfully with European stakeholders, address legitimate concerns about technological sovereignty, and demonstrate alignment with European values and interests.
