Openai's UAE Data Centre Plan Propels GCC's AI Drive
OpenAI, the creator of ChatGPT, is poised to anchor a colossal 5-gigawatt data centre campus in Abu Dhabi, potentially one of the largest globally, signifying a game-changing opportunity for GCC's AI drive.
This project, developed in collaboration with Abu Dhabi-based tech giant G42, marks a significant milestone in the UAE's quest to become a global AI hub and underscores OpenAI's strategic expansion beyond the US. While details remain under wraps, sources close to the project indicate an announcement may be imminent, heralding a new era for AI infrastructure in the Middle East.
The Abu Dhabi campus is a cornerstone of OpenAI's Stargate initiative, a joint venture with SoftBank and Oracle announced in January 2025, aimed at constructing massive data centres worldwide to power advanced AI development. Unlike its 1.2-gigawatt facility under construction in Abilene, Texas, the UAE project dwarfs its US counterpart, boasting a capacity over four times larger.
Spanning 10 square miles and requiring power equivalent to five nuclear reactors, the facility will house cutting-edge chips, with an initial 1-gigawatt phase demanding 500,000 of Nvidia's latest processors. OpenAI will share this capacity with other firms, amplifying the project's regional impact.
This venture builds on a deepening US-UAE AI partnership, rooted in a 2023 collaboration between OpenAI and G42, chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE's national security adviser.
OpenAI CEO Sam Altman has lauded the UAE's early embrace of AI, noting during a 2023 Abu Dhabi talk that the nation was ahead of the curve. The project also involves Oracle and potentially MGX, an Abu Dhabi investment entity, with other US partners possibly joining. This aligns with a broader bilateral framework to boost AI collaboration, including the potential sale of over a million high-end Nvidia chips to the UAE, part of a US strategy to maintain technological dominance globally.
The UAE's emergence as an AI powerhouse is not without complexities. G42's historical ties to China have sparked concerns among US officials, who fear that advanced US technology could inadvertently reach Beijing. These worries, amplified by the project's scale, have fuelled debates within the Trump administration about the risks of“offshoring” AI capabilities. National security concerns over sharing cutting-edge semiconductors persist, given their critical role in AI development. Despite these tensions, the project advances, coinciding with President Donald Trump's recent Middle East visit, where AI deals were reportedly discussed.
For the UAE, the data centre represents a leap towards achieving its vision of becoming a global AI leader. OpenAI's involvement lends credibility, signalling confidence in the UAE's regulatory environment and technological ecosystem. The project also promises economic benefits, from job creation to attracting global tech firms, while reinforcing Abu Dhabi's role as a nexus for innovation.
OpenAI's UAE venture reflects a broader trend of AI infrastructure globalisation. While the company plans up to 10 additional US data centres, its Middle Eastern project fulfils an ambitious 5-gigawatt vision initially pitched to the Biden administration.
By realising this abroad first, OpenAI is accelerating the UAE's AI ascent, potentially reshaping the global tech landscape. As negotiations continue and the campus takes shape, the UAE stands to gain not just infrastructure but a pivotal role in shaping AI's future, bridging East and West in a high-stakes technological race, AI experts said.
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