OpenAI Explores Canadian Data Center Expansion, Citing Energy and Land Availability

OpenAI is exploring potential data center partnerships in Canada, pointing to the nation's substantial energy reserves and available land as key drivers, according to statements by George Osborne, head of OpenAI for Countries. Osborne shared the details in an interview with Bloomberg during an investment conference in Toronto hosted by Mark Carney on Sept. 14 and 15, as reported by The Next Web.

Osborne, who served as Britain's chancellor of the exchequer from 2010 to 2016, joined OpenAI in December as managing director to oversee OpenAI for Countries. The division is tasked with rolling out the artificial intelligence firm's Stargate infrastructure initiatives globally. Operating out of London, Osborne previously appointed Carney—then governor of the Bank of Canada—to head the Bank of England in 2012.

Speaking at the Toronto gathering, which brought together roughly 100 of the world's largest investment firms, Osborne praised the host nation's regulatory direction. He described the Canadian prime minister's medium- and long-term strategy as "very impressive," characterising it as "one of the clearer plans for AI adoption of a western government." The conference forms part of an effort led by Carney to attract $1 trillion in total investment over a five-year period.

The search for capacity in North America follows OpenAI's decision to pause its planned Stargate expansion in the United Kingdom in April. At the time, the company indicated that it would only proceed with British projects once industrial power costs and local regulations permitted long-term infrastructure investment.

The U.K. proposal faced significant economic headwinds, with domestic industrial electricity costs running roughly four times higher than rates in the United States, Norway, Sweden, and Finland. Concurrently, energy grid connection applications in the U.K. surged from 41 gigawatts in November 2024 to 125 gigawatts by June 2025.

The suspended British project was originally slated to deploy 8,000 Nvidia graphics processing units in North East England, with long-term plans to expand to 31,000 units. However, reporting from The Guardian indicated that OpenAI representatives had never visited the proposed physical site, and a widely publicized £1.9 billion contract was never formally executed. Broader legislative uncertainty regarding text and data mining copyright exemptions also stalled progress.

In contrast, OpenAI established European operations in Norway. The Stargate Norway facility relies on 230 megawatts of hydroelectric power in Narvik, with a target of running 100,000 Nvidia GPUs by the end of this year—leveraging the same combination of affordable power and real estate that Osborne cited in Toronto.

Meanwhile, European regulators are pushing forward with their own infrastructure initiatives. The European Union has issued a call for AI gigafactory proposals closing on Nov. 12, aiming to mobilize more than €20 billion in private funding across up to seven locations. France has already submitted a $10 billion bid under the framework.