Microsoft has taken a significant step in bolstering its AI infrastructure by securing 30,000 Nvidia Rubin GPUs for a data center in Kvandal, near Narvik, Norway. This latest agreement deepens its partnership with Nscale and aims to meet the increasing global demand for advanced AI compute capacity.
The new GPUs, announced on April 14, will be housed at a 230MW facility currently under development through the Aker Nscale joint venture. Delivery of these GPUs is scheduled for 2027. This site, originally planned to host OpenAI’s "Stargate" project, will now cater to Microsoft after OpenAI exited the agreement.
OpenAI’s departure from the Norway data center project comes after the company failed to finalize a deal with Nscale, according to a report from Bloomberg. This move aligns with OpenAI’s recent withdrawal from a similar partnership with Nscale in the UK, citing regulatory challenges and high energy costs in that market.
Josh Payne, founder and CEO of Nscale, highlighted the growing appetite for cutting-edge AI infrastructure. "Customer demand for advanced AI infrastructure continues to accelerate across markets, and our focus is on bringing the latest technology online in the right locations and at real scale. Deployments in Narvik reflect strong demand from customers, and Nscale continues to respond with pace and relentless execution", said Payne.
Microsoft echoed these sentiments, emphasizing the importance of scalability and strategic locations. Jon Tinter, president of business development and ventures at Microsoft, said, "Expanding our work with Nscale in Narvik helps ensure Microsoft customers have access to the advanced AI infrastructure they need as demand continues to grow across Europe. By bringing scalable capacity online with experienced partners like Nscale, we’re enabling the next generation of AI workloads with the latest infrastructure deployed at real-world scale."
Microsoft has been actively expanding its AI infrastructure globally. The company previously signed a $6.2 billion agreement with Nscale in September 2025 related to the Narvik site, though the financial details of this latest GPU deal have not been disclosed. Microsoft and Nscale also collaborate on capacity agreements in the UK, Texas, and Portugal, further highlighting Microsoft’s commitment to meeting the rising demand for AI capabilities.
This move comes as Microsoft seeks to recover from a period of scaled-back spending on AI infrastructure. According to The Information, the company had slowed its AI investments in late 2024 to stay within an $80 billion budget, leading to delays or cancellations of data center projects totaling up to 2GW globally. Competitors quickly absorbed the capacity left behind, forcing Microsoft to ramp up its efforts to regain momentum in the AI race.
Alistair Speirs, Microsoft’s general manager of Azure cloud infrastructure, commented, "Microsoft’s global infrastructure approach is built on flexibility and optionality, based on the near-term and long-term demand signals we see from customers."
With this latest GPU procurement and its strengthened collaboration with Nscale, Microsoft is positioning itself to meet the surging demand for AI infrastructure across Europe and beyond. As the new GPUs arrive in 2027, the Kvandal facility will play a central role in supporting Microsoft’s AI ambitions and ensuring its customers have access to cutting-edge technology at scale. OpenAI’s exit, while notable, sets the stage for Microsoft to capitalize on this strategic opportunity in Norway’s data center landscape.
