NORTH TYNESIDE — OpenAI paused its Stargate UK project in April 2025, citing concerns over regulation and high energy costs. The project was announced during Donald Trump's September 2025 visit to London, with OpenAI planning to collaborate with Nscale and Nvidia to develop infrastructure at sites across Britain.

An OpenAI spokesperson stated, "We see huge potential for the UK's AI future … 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."

John Johnsson, the leader of the Conservatives in North Tyneside, stated that local authorities were not made aware of discussions regarding the project before its announcement. "When it was announced, we were really, really taken aback," Johnsson said. "We were surprised because we weren't made aware of any of these discussions."

Freedom of information requests indicate that OpenAI and Nscale did not meet with local authorities at the Cobalt Park site in North Tyneside. Johnsson added, "There's just not the infrastructure there to be able to actually support it." He also said, "It's now looking highly unlikely whether the project is going to come to North Tyneside."

The UK government stated in a press release that the AI growth zone for Stargate UK was set to bring in £30bn in investment. Of this, £10bn was committed by Blackstone for a separate datacentre project in the area, with the potential for an additional £20bn from future partners. The government stated the £20bn figure represented the amount needed to build a datacentre and obtain computing power for a 1.1GW electricity supply but declined to provide details on its calculation or identify future partners.

Kamila Kingstone, a senior campaigner at Spotlight on Corruption, criticized the approach. "It is disingenuous for the government to imply that the £20bn for the AI growth zone will be forthcoming, when it reflects the amount needed," Kingstone said. She added, "It will give false hope to communities that eye-watering amounts of money are on the way to boost the local economy when the reality might be very different."

A freedom of information request from the UK's National Energy System Operator suggests the Cobalt Park site did not have a grid connection. The Stargate UK project submitted an alternative solution to power itself, which was redacted in the application returned via the request.