On Thursday, OpenAI and the technology firm G42 revealed plans to construct a data center with a capacity of 1 gigawatt in the United Arab Emirates (UAE), positioning it as one of the most powerful facilities globally.
This information was reported by The Wall Street Journal. The initiative, named Stargate UAE, aligns with the UAE’s ambition to establish itself as a worldwide center for artificial intelligence (AI). The government aims to become a leading investor in AI technologies and related infrastructure, making the IT sector a key source of employment.
The project is spearheaded by G42, an AI-focused company managed by Sheikh Tahnoon bin Zayed al Nahyan, the brother of the president and an advisor on national security. OpenAI has stated that as part of this collaboration, an advanced version of ChatGPT will be freely accessible to all residents of the UAE.
The initial phase of the data center, which will have a capacity of 200 megawatts, is expected to be operational by the end of 2026. Plans for the remaining capacity are currently being developed. The funding for construction will be provided by G42, while OpenAI and Oracle will oversee the management of the facility. Other collaborators include investors such as SoftBank, chip manufacturer Nvidia, and networking company Cisco.
The financial details related to the Abu Dhabi venture remain undisclosed. However, similar projects in the United States have exceeded costs of $10 billion.
Discussions with Trump Administration
This project follows several months of talks between the UAE and the Trump administration, culminating in an agreement to import up to 500,000 AI chips each year. Insiders report that this agreement is an exception to earlier restrictions set by the Biden administration, which had limited high-tech access only to close allies due to concerns over national security, especially regarding China.
The UAE has actively engaged in a public relations campaign to gain the trust of the Trump administration, pledging over $1.4 trillion in investments in the United States. Additionally, they utilized $2 billion in cryptocurrency from Trump’s World Liberty Financial to invest in a cryptocurrency venture and facilitated meetings between prominent CEOs of American companies and members of the UAE royal family in Abu Dhabi.
According to David Sacks, an AI advisor from the Trump administration, the agreement indicates that the UAE will also play a role in enhancing the AI infrastructure within the US to match that of their own capabilities.
The UAE’s investment fund, MGX, is already collaborating on Stargate, a proposed network of data centers in the US valued at approximately $100 billion, a joint venture involving OpenAI and SoftBank.
Future collaborations with additional US tech firms are anticipated. UAE leaders are actively seeking partners for their upcoming cluster of data centers, which will have a total capacity of 5 gigawatts. A model of the project was showcased during Trump’s recent visit to the region. The UAE is optimistic that US technology companies will prefer to position servers nearer to users in Africa and India to enhance data transmission speeds.
Tip: UAE aims to establish the largest AI campus beyond the US following this agreement