UAE Launches Largest AI Data Center Outside the US With OpenAI and Nvidia

The United Arab Emirates has accelerated its push to become a global artificial intelligence powerhouse by launching one of the world’s largest AI infrastructure projects outside the United States.

The initiative, known as Stargate UAE, is being developed through a partnership involving Abu Dhabi-based G42, OpenAI, Nvidia, Oracle, Cisco, and SoftBank. The project is expected to begin operations in 2026 and will include advanced AI cloud infrastructure powered by Nvidia’s latest AI chips.

According to reports, the first operational phase will deploy around 200 megawatts of AI computing capacity, with long-term expansion plans reaching nearly 5 gigawatts. Analysts say the project could become one of the most powerful AI computing hubs globally.

The UAE government sees AI infrastructure as a core pillar of its future economic strategy. Officials are aggressively investing in cloud computing, sovereign AI systems, data centers, and semiconductor partnerships to reduce dependence on oil revenues and position the Gulf as a global digital economy center.

The project also strengthens cooperation between the United States and Gulf nations in advanced technology sectors. Washington recently eased certain AI semiconductor export restrictions to support strategic partnerships with UAE technology firms.

Experts believe the data center will attract AI startups, cloud companies, enterprise software developers, and global investors to Abu Dhabi. Businesses across healthcare, logistics, finance, and energy are expected to benefit from easier access to large-scale AI computing resources.

The Gulf region’s growing AI ecosystem is rapidly transforming global technology competition. Saudi Arabia and the UAE are increasingly competing to become the Middle East’s dominant AI infrastructure hub.

Industry analysts say energy availability, government investment power, and strategic geographic positioning give Gulf countries a major advantage in building large AI computing facilities.

The launch of Stargate UAE reflects how artificial intelligence is becoming central to global economic and geopolitical strategies in 2026.

Source : Reuters.