OpenAI Plans Giant UAE Data Center as Part of Global Stargate AI Expansion

OpenAI is preparing to help build one of the largest AI infrastructure projects in the world: a 5-gigawatt data center campus in Abu Dhabi. Spanning roughly 10 square miles—an area larger than the country of Monaco—the facility would mark a major leap in scale for the company’s data operations, according to a new report from Bloomberg.

The project is being developed in partnership with G42, a tech conglomerate based in Abu Dhabi. If completed, the site would require as much power as five nuclear reactors—far exceeding anything OpenAI or its competitors have previously announced.

Part of the Global “Stargate” Initiative

This Abu Dhabi campus is expected to serve as a key location in OpenAI’s Stargate project, a joint venture launched in January involving OpenAI, SoftBank, and Oracle. The initiative aims to build massive, globally distributed data centers equipped with high-performance computing chips to support advanced AI development.

While the first Stargate site in Abilene, Texas, is already under construction with a planned capacity of 1.2 gigawatts, the Abu Dhabi project would be more than four times as large.

Strengthening U.S.–UAE AI Ties

The data center is the latest development in a growing AI partnership between the United States and the United Arab Emirates. OpenAI’s relationship with the UAE began in 2023 through an agreement with G42 to accelerate AI deployment across the region.

During a visit to Abu Dhabi that same year, OpenAI CEO Sam Altman highlighted the country’s early embrace of artificial intelligence, saying the UAE had been “talking about AI since before it was cool.”

Political Complications and Security Concerns

The partnership has not come without scrutiny. G42, founded in 2018, is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security advisor and brother to the country’s ruler. Its leadership and business ties have raised concerns among U.S. lawmakers, particularly over the company’s previous connections to China.

In late 2023, officials in Washington raised alarms about G42’s “active relationships” with blacklisted Chinese firms such as Huawei and the Beijing Genomics Institute, as well as links to individuals tied to Chinese intelligence networks.

Following that scrutiny, G42’s CEO told Bloomberg in early 2024 that the company had divested from all China-related investments and no longer maintained a physical presence there. “All of our China investments that were previously made are already divested. Because of that, of course, we have no need anymore for any physical China presence.”

Microsoft’s Investment and Strategic Alignment

Soon after G42’s public pivot, Microsoft—OpenAI’s largest investor—announced a $1.5 billion investment in the G42 Emirati company. Microsoft President Brad Smith also joined G42’s board of directors, signaling deeper alignment between the firms and reinforcing Microsoft's long-term interests in the region.

What This Means

OpenAI’s Abu Dhabi data center is more than a technical milestone—it signals how AI infrastructure is becoming a new arena for global power, investment, and influence.

Building a single facility that draws as much energy as five nuclear reactors underscores the extraordinary scale at which AI companies now operate. These centers are no longer just data storage hubs—they’re the physical backbone of advanced model training, automation, and generative tools that will shape future economies.

The Stargate project also reflects a new kind of geopolitical alliance: one where AI superpowers like OpenAI, Microsoft, and Oracle collaborate with strategic partners in regions like the Gulf to build capacity far beyond the U.S. or Europe. In this case, the UAE’s financial power and ambition to lead in tech make it a key enabler—but also a source of concern, especially given past ties to Chinese tech firms.

For lawmakers and regulators, the project raises difficult questions about oversight, control of critical technology, and where the limits of public-private alignment should be drawn. For businesses and citizens, it shows how decisions about where AI is built can shape who gets to benefit from it—and who sets the rules.

As these megaprojects accelerate, infrastructure is no longer just a backdrop to AI progress—it’s becoming the front line, where partnerships are forged, power is negotiated, and the next phase of AI development will be defined.

Editor’s Note: This article was created by Alicia Shapiro, CMO of AiNews.com, with writing, image, and idea-generation support from ChatGPT, an AI assistant. However, the final perspective and editorial choices are solely Alicia Shapiro’s. Special thanks to ChatGPT for assistance with research and editorial support in crafting this article.