The UK announced its AI Opportunities Action Plan in January 2025 — a signature programme for the new and otherwise ideas-free Labour government. It would include a huge OpenAI data centre or two, part of OpenAI’s Stargate plan! £20 billion of new UK data infrastructure!
In February this year, the Guardian found that none of this existed: [Guardian]
the money isn’t necessarily real, the datacentres may not be new, the jobs are unaccounted for — and the supercomputer site 12 miles north of London is still a scaffolding yard.
In April, OpenAI said it was pulling out of the UK Stargate plan entirely — blaming power costs and “regulatory uncertainty.”
The Guardian has a new exposé on OpenAI’s plans for a data centre in North Tyneside outside Newcastle. Or what didn’t happen — anything at all. The government got OpenAI and alleged data centre firm NScale to go along with a press release: [Guardian]
Sources with knowledge of the process to set up Stargate UK suggested the government had approached the UK firm Nscale and OpenAI shortly before Donald Trump’s visit to the UK last year, asking them to agree to develop the Stargate UK site in Cobalt Park, a business park in North Tyneside. “They needed a big announcement,” said one.
The UK government touted £30 billion of AI investment. At least £20 billion of that was just made up for the press release! The government just thought it sounded like a nice number:
The government said the figure of £20bn was given because that was the amount of money the site would need in order to build a datacentre and obtain the computing power necessary to utilise its electricity supply, which it said was 1.1GW.
Someone guessed it would cost £20 billion, so the press release said that much was coming. It was not. It never was. This claim was a lie.
The Guardian sent a freedom of information request to the National Energy System Operator, asking where this 1.1 gigawatts would be coming from. The plan that NESO sent back did not include a grid connection. It was going to power itself — but didn’t specify how.
North Tyneside Conservatives leader John Johnsson told the Guardian:
There’s just not the infrastructure there to be able to actually support it … The fundamentals, energy costs, grid capacity and infrastructure do not appear to have been in place to support a project of this scale.
The entire thing was made up.
OpenAI told the Guardian:
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.
So that’ll be never, then.
