OpenAI's Stargate Korea data center plans stall over power and funding hurdles
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| Source: Mastodon | Original article
OpenAI's planned Stargate data center in South Korea is delayed due to power supply and funding challenges.
OpenAI’s much‑heralded “Stargate” expansion in South Korea has hit a standstill. Almost a year after the project was unveiled, the consortium of OpenAI, Samsung Electronics and SK Hynix (with SK Telecom also cited) has not secured a site, a reliable power supply or the financing needed to move beyond the planning stage. Both Samsung and SK Hynix have publicly reported “little progress,” and the partnership has yet to lock in the infrastructure that would underpin the data centre’s massive energy demand.
The delay matters because Stargate was pitched as a cornerstone of OpenAI’s global compute strategy, initially targeting a 10‑gigawatt capacity that would dwarf existing AI clusters. Yet, as OpenAI’s compute lead‑officer Sachin Katti told Time, the firm still “does not have enough computing power” and would have needed to acquire “a lot more” capacity. Without a firm power contract or funding pipeline, the Korean leg cannot contribute to the compute surplus OpenAI claims it is already planning beyond the original target.
The stall also highlights broader tensions in the AI‑hardware race. South Korea’s push to host sovereign AI infrastructure collides with national constraints on electricity and capital, echoing similar concerns raised in recent reports about AI data‑center siting in other regions. Observers will be watching for any breakthrough in site selection, power‑grid agreements or new investment commitments in the coming weeks. A resolution could revive the project and cement South Korea’s role in the next wave of AI compute, while further delays may force OpenAI to look elsewhere for the megawatt‑scale resources it says it still needs.
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