The United States and the United Arab Emirates have entered into a significant agreement that will facilitate the establishment of the world’s largest artificial intelligence campus outside of the US. This agreement comes after previous concerns regarding potential access to sensitive technology by China.
While specific details regarding the AI chips from Nvidia or other manufacturers that may be incorporated into the UAE’s data centers were not disclosed, sources indicated that this pact would grant the UAE greater access to advanced AI chip technology. Nvidia’s CEO, Jensen Huang, was visible in broadcast footage speaking with President Trump and UAE President Sheikh Mohamed bin Zayed Al Nahyan during Trump’s visit to Abu Dhabi on Thursday.
This long-anticipated agreement, finalized during Trump’s visit, represents a significant victory for the UAE, which is striving to maintain a balance between its traditional alliance with the US and its considerable economic ties with China. The arrangement demonstrates the Trump administration’s assurance that the technology can be effectively managed, especially by stipulating that the data centers will be operated by American companies.
The UAE, a significant oil producer, has been investing heavily to position itself as a global leader in artificial intelligence. However, its relationships with China have previously restricted its access to US-made chips under President Biden’s administration.
According to a statement from the White House, the AI agreement mandates that the UAE commit to investing in, constructing, or financing American data centers that match or exceed the size and capabilities of those in the UAE.
The agreement also embodies the UAE’s commitment to aligning its national security measures more closely with those of the United States, incorporating strong safeguards to prevent any diversion of American-origin technology.
Earlier reports indicated that the two nations had finalized a technological framework agreement that would place requirements on both sides regarding the security of the technology involved.
It has been suggested that starting in 2025, the UAE may be permitted to import up to 500,000 of Nvidia’s most advanced AI chips annually. Nvidia has not commented on this matter, and there was no immediate response from the UAE foreign ministry concerning inquiries for comments.
A central aspect of the agreement, as announced recently, is a 10-square-mile (25.9 square kilometers) AI campus in Abu Dhabi, which will feature a power capacity of 5 gigawatts for AI data centers, according to the Commerce Department.
“This campus surpasses all other prominent AI infrastructure announcements we’ve seen thus far,” stated Rand Corporation analyst Lennart Heim on social media. He estimated that this power capacity would be sufficient for 2.5 million of Nvidia’s leading B200 chips.
The construction of the campus will be carried out by G42, a state-supported firm in Abu Dhabi. However, Secretary of Commerce Howard Lutnick noted that “American companies will run the data centers and deliver American-managed cloud services throughout the region.”
The US fact sheets also indicated that Qualcomm is preparing to establish an AI-related engineering center, while Amazon Web Services, part of the tech and retail corporation, will collaborate with local partners to enhance cybersecurity and promote cloud adoption.
Improving Relations
For years, the US has adopted protectionist measures to limit China’s access to advanced semiconductors, including preventing these chips from being transferred to China through intermediaries.
However, under Trump’s administration, there has been a shift toward easing regulations. Trump’s AI advisor, David Sacks, noted recently that the Biden administration’s export controls were not meant to affect allies and partners.
Granting the UAE increased access to cutting-edge chips produced by companies like Nvidia represents a significant shift in policy.
“This transformation enables the UAE to deepen its technological collaboration with the United States while maintaining its commercial relations with China,” remarked Mohammed Soliman, a senior fellow at the Middle East Institute.
“This does not signify a severance from China but rather a recalibration of tech strategies to align with US standards and protocols where they are most critical: computing, cloud technology, and semiconductor supply chains,” he added.
AI was a focal point during UAE President Sheikh Mohamed bin Zayed Al Nahyan’s visit to Washington in December, coinciding with the conclusion of Biden’s presidency. G42 and MGX, the state-backed entities leading the UAE’s AI investment efforts, have also invested in US firms like OpenAI and Elon Musk’s xAI, while Microsoft committed to injecting $1.5 billion into G42 last year.
The two entities claimed that the agreement was backed by security guarantees, and, underUS pressure, G42 had previously started removing Chinese hardware from its operations and divesting from Chinese investments.
Nonetheless, significant Chinese firms such as Huawei and Alibaba Cloud continue to operate in the UAE, and incidents of organized smuggling of AI chips to China have been reported from countries including Malaysia, Singapore, and the UAE, according to a source who spoke to Reuters in February.