World’s Largest AI Data Center to Rise in Abu Dhabi
Recent Development
Abu Dhabi will host the world’s largest AI data center, named Stargate UAE, set to launch in 2026. The project is a collaboration between OpenAI, UAE’s G42, Oracle, Nvidia, Cisco, and SoftBank. It aims to establish a 5-gigawatt AI campus, with the first phase delivering 200 megawatts by 2026.
The initiative was announced on May 22, 2025, during a US-UAE agreement, signaling a major step in global AI infrastructure. This follows a deal brokered by US President Donald Trump, easing restrictions on advanced tech exports to the UAE.
Background
The UAE is pushing to become a global AI hub, diversifying its economy beyond oil. Abu Dhabi’s tech-forward policies and investments in digital infrastructure make it a prime location. The UAE-US AI Campus, spanning 10 square miles, supports this vision.
The project aligns with the UAE’s goal of automating government processes by 2027, backed by a $3.54 billion digital strategy. A similar AI data center push in Saudi Arabia, aiming for 1.9 gigawatts by 2030, reflects a regional race for “sovereign AI” dominance.
Who Initiated It
The project is led by G42, an Emirati AI firm chaired by Sheikh Tahnoun bin Zayed Al Nahyan, brother of UAE President Sheikh Mohamed bin Zayed Al Nahyan. OpenAI, Oracle, Nvidia, Cisco, and SoftBank are key partners.
The initiative stems from a US-UAE agreement, with Trump’s administration enabling the export of 500,000 Nvidia AI chips annually. UAE’s MGX, a tech investment fund, also backs the project, alongside OpenAI’s global Stargate initiative for AI infrastructure expansion.
What Is an AI Data Center
An AI data center is a facility designed to process massive datasets for artificial intelligence tasks. It houses high-performance computers, GPUs, and servers optimized for AI model training and deployment. These centers support machine learning, natural language processing, and data analytics.
Stargate UAE will use Nvidia’s advanced Grace Blackwell GB300 chips for computing power. The facility aims to serve AI needs across a 2,000-mile radius, boosting regional and global innovation.
How It Works
AI data centers rely on powerful hardware like Nvidia GPUs to handle complex computations. They store and process vast amounts of data, enabling AI models to learn and generate outputs. Stargate UAE will start with 100,000 Nvidia chips, scaling to 2.5 million GPUs.
The center will use nuclear, solar, and natural gas for energy, ensuring efficiency. Operated by OpenAI and Oracle, it will provide cloud services and support AI-driven solutions for governments and businesses.
Cost and Impact
The Stargate UAE project’s cost is estimated at $100 billion, with G42 funding the construction. The UAE also committed $1.4 trillion in US investments to secure the partnership. This includes funding a matching US-based Stargate facility.
The project will drive economic growth in Abu Dhabi, create jobs, and attract global tech talent. By offering free ChatGPT access in the UAE, it aims to democratize AI. The campus will power a major city’s worth of computing, solidifying the UAE’s role in global AI leadership.
The Stargate UAE project marks a turning moment in AI infrastructure development. It positions Abu Dhabi as a central node in the global AI network, promoting innovation and economic diversification.
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