A project has been launched to create a campus and data center dedicated to artificial intelligence in the UAE, which is poised to be one of the largest computing infrastructure undertakings globally.
G42, an AI company based in Abu Dhabi, has partnered with major tech players including OpenAI, Oracle, Nvidia, and SoftBank Group to establish Stargate UAE.
This facility is set to be the largest AI data center, part of a global network of OpenAI-related data centers, reinforcing the UAE’s growing reputation as a hub for essential technological infrastructure needed for economic, social, and business progress.
Sam Altman, the CEO of OpenAI, expressed his enthusiasm on social media saying, “It’s fantastic to collaborate with the UAE on our first international Stargate! I appreciate the collaborative efforts involved in bringing this to fruition. Sheikh Tahnoon has been a significant advocate for OpenAI and a dear friend.”
Following is an analysis of the implications of these substantial figures and a comparison of Stargate UAE with other facilities.
Understanding Data Center Capacity
Data center capacity refers to the total physical space and electrical power required for data storage and processing, commonly indicated in kilowatts or megawatts.
Data centers are categorized into three sizes: small (up to about 1,000 square feet), medium (10,000 to 50,000 square feet), and large (over 50,000 square feet), according to Data Centre World.
Generally, larger data centers correspond to greater capacity. Monthly energy consumption can reach approximately 36,000kWh for small centers and up to 2,000MW for larger facilities, as reported by Data Centre World.
Capacity is not solely about power and data management; it also involves cooling systems, facility size, server types, and particularly, the number of graphics processing units (GPUs) utilized. The trend is toward implementing more sustainable systems to enhance operational efficiency.
Understanding the Impact of 1MW and 1GW
One megawatt (MW) can power 1,000 Nvidia Blackwell GPUs for training purposes, or it can handle millions of daily inquiries similar to those posed to ChatGPT in inference mode.
As Mohammed Soliman, the director of strategic technologies and cybersecurity at the Middle East Institute, noted, “Think of 1MW as essential for a medium-sized national-language model that serves an entire nation.”
Moreover, 1 gigawatt (GW) of continuous energy could support about one million high-performance Nvidia GPUs, factoring in cooling and power conversion costs.
This amount of energy equates to the annual electricity consumption of a city like San Francisco or Washington.
The Cost of Building Data Centers
The construction costs of data centers can vary significantly, from millions to billions of dollars, based on their size.
Factors influencing these expenses include land acquisition and building costs, server requirements, infrastructure needs such as cooling and power (which could be lower with green energy), security provisions, and labor costs.
Builders must also consider potential rises in operational costs over time and the strategic choices for the data center’s location. Tokyo, Singapore, and Zurich are cited as the priciest markets for data center development, as indicated by Turner & Townsend, a UK professional services firm.
Previously, the China Telecom Data Center, which was the largest before Stargate UAE, operated at a capacity of 150MW and had a construction cost of $3 billion. The investment in the Stargate UAE facility, which is being developed with partnerships from Cisco and Japan’s SoftBank Group as part of a larger planned 5GW campus, is projected to be around $20 billion, according to OpenAI.
Stargate UAE in Comparison to Other Large Data Centers
The Stargate UAE facility significantly outshines competitors, as highlighted by its recent announcement.
It exceeds both Google and Microsoft’s data centers regarding both size and financial investment, with capacities of 100MW and 50MW, respectively, at costs of around $5.5 billion and $3 billion based on data from Brightlio, a technology services firm based in California.
Furthermore, Apple’s Arizona data center has a capacity of 50MW and incurred a cost of $2 billion.
Once the 5GW campus is operational, it is expected to accommodate approximately 2.5 million GPUs and consume power equivalent to several mid-sized U.S. cities, according to Mr. Soliman.
The UAE currently has at least 17 data centers, with plans for further expansion.
Khazna Data Centres, a major operator in the region, has nearly 450MW of capacity and is planning a new 100MW facility in Ajman, the largest within the UAE. Its CEO, Hassan Al Naqbi, mentioned aspirations to increase UAE data center capacity to 850MW by 2029.
Additionally, a $545 million hyperscaler data center in Dubai is set to be developed in partnership with telecom operator du and Microsoft.
Moreover, the Endowment and Minors’ Fund Authority in Abu Dhabi is also inclined to invest in data centers as part of its strategy to safeguard its assets from economic uncertainties.
Significant investments from tech giants like Microsoft, Oracle, Google, and Alibaba are being directed into the UAE’s data center sector.
Mr. Soliman emphasized the strategic location of the UAE at the intersection of three rapidly developing regions: South Asia, East Africa, and the Middle East, which aligns perfectly with the latency requirements sought by hyperscalers.
Furthermore, the Stargate UAE project is expected to generate a consistent demand, fostering the viability of new clean energy initiatives, he added.