US and UAE Collaborating to Establish Major AI Data Center in Abu Dhabi

Former President Donald Trump and the President of the United Arab Emirates, Sheikh Mohamed bin Zayed al-Nahyan, have announced an ambitious project to create the largest cluster of artificial intelligence data centers outside of the United States. This initiative aims to support the UAE’s goal of establishing itself as a global center for AI technology.

This declaration was made during Trump’s latest visit to Abu Dhabi, which marks the third stop in his recent Gulf tour aimed at securing significant investments for the US economy.

Throughout his trip, AI was a recurring theme, as Gulf nations seek to leverage cutting-edge technology to diversify their economies, which have traditionally relied on oil. The region’s substantial sovereign wealth funds are keen on investing in AI initiatives.

The planned AI campus, covering 10 square miles in Abu Dhabi and set to be developed by Emirati AI firm G42, is designed to provide 5 gigawatts (GW) of data center power. This capacity is estimated to be sufficient for over 2 million of Nvidia’s latest GB200 AI chips, according to experts.

For comparison, Elon Musk’s “Colossus” AI supercomputer in Tennessee utilizes 200,000 of Nvidia’s previous-generation Hopper chips. While only a 1GW data center is set to be operational in the near future, it would still require around 500,000 of Nvidia’s newest chips.

OpenAI is expected to be one of the main tenants of this campus, as per sources familiar with the plans. Although the agreement has yet to be finalized, it would mark OpenAI’s first step in promoting “democratic AI” by offering its technology to U.S. allies.

Recently, OpenAI announced its intentions to expand AI infrastructure with American partners, and is in discussions with several European nations. This initiative aims to broaden the utilization of OpenAI’s tools and promote advantageous “democratic” principles while mitigating reliance on Chinese alternatives.

Chris Lehane, OpenAI’s Vice President for Global Affairs, expressed in a recent interview that the commitment is centered around the belief that as U.S. AI firms hold a competitive advantage, there is an opportunity to develop democratic frameworks within this sector.

Despite being an important ally in the Middle East, the UAE faces the same export controls as many other nations, which the U.S. has implemented to prevent the potential transfer of advanced technology to China, particularly in relation to chips produced by suppliers like Nvidia.

This licensing process has hindered the transfer of cutting-edge technologies, impacting Abu Dhabi’s aspirations to foster advanced industries and develop an “AI-native government.”

However, recent actions by the Trump administration suggest a relaxation of these restrictions, as they officially dismantled a proposed licensing framework that would have limited chip imports to tier 2 countries like the UAE just before it was set to take effect.

Thea Kendler, a former official at the Department of Commerce, pointed out that the current administration seems more inclined to support AI development beyond U.S. borders. She noted that Gulf nations are looking for reliable sources of chips, emphasizing that securing a continuous supply of both existing and future generations of chips is essential for investing in AI data center infrastructure.

In a related advancement, Saudi Arabia struck an agreement with Nvidia this week to establish “AI factories” utilizing the chipmaker’s latest processors.

UAE officials have been actively working to reassure U.S. counterparts of their commitment to partnering with American AI firms instead of those from China. G42, the leading AI company in the region, has claimed to have severed connections with Chinese suppliers. Furthermore, Abu Dhabi investment funds have supported AI initiatives in the U.S., such as Sam Altman’s Stargate and BlackRock’s $30 billion AI infrastructure fund.

The U.S. Department of Commerce announced that the U.S. and UAE have entered into a partnership framework for AI, stating that the UAE is dedicated to securing advanced AI technologies through stringent measures to prevent unauthorized access. However, it did not clarify if any adjustments were made to the UAE’s chip access regulations.

The advanced computing power will only be accessible to “U.S. hyperscalers and approved cloud service providers,” according to the Commerce Department. A White House statement highlighted that the agreement also includes commitments from the UAE to fund, construct, or invest in data centers of comparable size in the U.S.

Commerce Secretary Howard Lutnick characterized the agreement as a significant step towards realizing President Trump’s vision of U.S. dominance in AI technology.

Sheikh Tahnoon bin Zayed al-Nahyan, who chairs G42 and serves as the UAE’s national security adviser, expressed that this initiative “strengthens” the UAE’s status as a leader in advanced research and sustainable development.

Earlier this year, during a visit to the White House, this prominent member of the Abu Dhabi royal family announced a UAE commitment to invest $1.4 trillion in the U.S. over the next decade.

Business

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