High energy costs blamed for tech investment delay

High energy costs in the UK have been blamed as a factor in a decision by tech giant OpenAI to pause a major data centre project investment.

The company said it would only proceed with its Stargate UK project, which included plans for a huge data centre in the North East of England, when conditions improve.

A statement from the company which is behind ChatGPT, said: "We see huge potential for the UK's AI future. London is home to our largest international research hub, and we support the government's ambition to be an AI leader.”

It said it will 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”.

A Government spokesperson stressed the UK's AI sector had attracted more than £100bn in private investment since it came into office and said it would continue to work with OpenAI and other leading AI companies.