Concerns about how local regulations will affect AI are also a factor.
OpenAI has postponed plans to open one of the data centers central to its Stargate project.
It announced its plan to open the data center in the UK with great fanfare last September, when it was regarded as a major boost for the country’s nascent AI industry, as well as proving a step up for OpenAI’s international credentials. At the time, Sam Altman, CEO of OpenAI, said, “The UK has been a longstanding pioneer of AI, and is now home to world-class researchers, millions of ChatGPT users, and a government that quickly recognized the potential of this technology.”
All of that has been quietly forgotten. The plans for the data center in Northumberland, in the Northeast of England, have been put on hold, with the project ready to be revived when the conditions are ripe for major infrastructure investment, according to a report by the BBC.
The main reasons given for the hold-up are the cost of electricity, and regulatory issues.
It is not clear, however, what is new. It has long been the case that European governments have been more sensitive to the concerns of copyright holders about the use of their content to train AI models, one of the regulatory issues giving OpenAI pause for thought. The UK government published a consultation document on AI and copyright last month: Nothing has been decided yet, but that level of uncertainty may be causing doubts.
As for electricity supplies, data centers globally were already facing issues arising from the cost of providing power before the conflict in Iran caused energy prices to rise further.
The halting of the Stargate UK project comes at a time when AI providers are not only meeting increased costs but are facing questions as whether their expected returns are realistic.
