OSLO, July 31 (Reuters) - Norway's Aker ASA ( AKAAF )

said on Thursday it is partnering with Nscale Global Holdings

and OpenAI to build an artificial intelligence facility in

northern Norway, aiming to install 100,000 NVIDIA ( NVDA ) chips

by the end of 2026.

The partnership, called Stargate Norway, will use 100%

renewable energy to power the AI facility, Norwegian

conglomerate Aker ( AKAAF ) said in a joint statement with Nscale and

OpenAI.

Stargate Norway will be owned by a 50/50 joint venture

between Nscale and Aker ( AKAAF ), investing about $1 billion for the

initial phase of the project and with the potential to increase

the site's capacity tenfold in future phases, they said.

The facility, located in a hydropower-rich region of Norway,

will be among the first AI gigafactories in Europe, Nscale CEO

Josh Payne said in the statement.

"Sovereign, scalable and sustainable infrastructure is now

essential to remain competitive," he added.