OpenAI has halted its main data centre project in Britain due to an unfavourable regulatory environment and high energy costs. This decision undermines the UK government's efforts to become a global AI hub. Microsoft-backed OpenAI, which has become a leading player following the widespread adoption of ChatGPT, plans to proceed with the data centre once conditions are in place to support sustained, long-term investment. The project was intended to strengthen Britain's sovereign compute capabilities and support faster AI adoption in the UK. The UK government is working with OpenAI and other leading AI companies to strengthen UK compute capacity.