Expansion of OpenAI's data center initiative announced for Norway
In a bid to position Europe as a strong competitor in the AI race, tech giants and the European Union are investing heavily in building large-scale AI data centers, known as "gigawatt factories." These data centers are designed to support next-generation AI products and address the current gap in computational capacity for AI development compared to global leaders like the US and China.
The EU has committed about €30 billion ($30 billion) for this initiative, with €10 billion allocated to develop 13 AI factories and an additional €20 billion aimed at establishing multiple gigawatt-class AI data centers across 16 member states. The first AI factory is expected to commence operations soon, with major projects underway in locations such as Munich, Germany.
In Norway, companies like Telenor are already exploring AI factory concepts, emphasizing the importance of data sovereignty and control over sensitive information used in AI models. The planned installation for OpenAI's data center in Norway is 290 megawatts.
The "gigawatt factories" are envisioned as large-scale data centers equipped with vast numbers of powerful GPUs capable of training advanced AI models and processing real-time data for AI products. Each gigawatt data center is expected to cost between €3 to €5 billion and potentially support hundreds of thousands of next-generation AI processors.
Meanwhile, the US and China are increasingly decoupling, even as they try to maintain a fragile trade truce. Beijing has stopped approving requests by Chinese companies to invest or expand in the US. This decoupling trend is also seen in the scientific sphere, according to a Princeton researcher.
Elsewhere, the US-Israeli-designed "worm" damaged Iranian nuclear centrifuges in 2010, and the US and Israel are facing concerns about mass starvation in Gaza. In other political developments, El Salvador's legislature approved constitutional amendments removing term limits, potentially allowing its President Nayib Bukele to rule for life.
The global economy is also experiencing turbulence. The effective US tariff rate has nearly seven times its level before Trump took office, and stock markets fell around the world after US President Donald Trump unveiled a new set of tariffs. Significantly fewer American companies plan to invest in China this year compared to 2024.
In the cybersecurity realm, Kremlin-backed hackers are targeting foreign embassies in Moscow, according to Microsoft. The majority of Democrats in the US Senate voted to block weapons sales to Israel, signaling a break in the bipartisan consensus in Washington backing its ally.
In a positive note, the planned installation for OpenAI's data center in Norway will be powered by renewable energy. Education exchanges between the US and China are rarer, with the US National Science Foundation issuing far fewer grants related to China in recent years.
The new runway and sixth terminal at London's Heathrow airport, if built, would boost annual passenger throughput from 84 million to 150 million. The inflation rate on goods from China is increasing rapidly, and there are concerns about the potential impact on global supply chains.
In conclusion, Europe, tech giants, and consortium partners are actively building large-scale AI data centers with "gigawatt" scale power to support next-generation AI products, reflecting a growing and coordinated trend toward massive AI infrastructure investment. Meanwhile, the US and China are decoupling, and the global economy and political landscape are experiencing significant changes.
The EU has allocated €10 billion towards the development of 13 AI factories and an additional €20 billion aiming to establish multiple gigawatt-class AI data centers, demonstrating their commitment to the renewable-energy-powered AI industry. These data centers, also known as "gigawatt factories," are expected to be driven by finance from various sources. In the forthcoming AI factories, data-and-cloud-computing technology will play a crucial role in processing real-time data for AI products.
