OpenAI and Abu Dhabi-based AI company G42 are teaming up to build one of the world's largest data centers for artificial intelligence.
The new facility, called "Stargate UAE," is set to launch in Abu Dhabi and could eventually reach up to one gigawatt of computing power. In its first phase, Stargate UAE aims for a 200-megawatt capacity by the end of 2026. The project is funded by G42 and will be operated by OpenAI and Oracle, with Nvidia, Cisco, and SoftBank also on board as partners.
As part of the initiative, ChatGPT will be made available for free in the United Arab Emirates. The broader goal is to turn the UAE into a global hub for artificial intelligence. The government is investing heavily in AI infrastructure, using its strategic location to offer low-latency data services to markets in Africa and India.
G42 is controlled by Sheikh Tahnoon bin Zayed al Nahyan, the UAE's national security advisor and brother of the country's president. Building the Stargate UAE data center is part of a national strategy to attract international tech companies and position the UAE as a key destination for AI innovation.
New export rules enable massive chip imports
The project was made possible by a special agreement with the Trump administration, which allows the UAE to import up to 500,000 high-performance AI chips per year. This deal stands in contrast to earlier export restrictions imposed under President Biden. In return, the UAE agreed to help build equivalent AI infrastructure in the United States. The sovereign wealth fund MGX is already involved in the US-based "Stargate" project.
The new data center will run on Nvidia hardware, with the company providing a significant share of the required chips. Other US firms, including Cisco and SoftBank, are also involved. The partnership with OpenAI and Oracle is designed to provide operational stability and access to leading AI software.
Geopolitical race for AI infrastructure
The Stargate UAE initiative is part of a growing global race to build "sovereign AI"—national AI infrastructures that are state-controlled and tailored to local needs.
Saudi Arabia recently announced a multi-billion-dollar AI infrastructure project of its own. The new state-owned company Humain, backed by the Public Investment Fund (PIF), is partnering with Nvidia, AMD, and Amazon Web Services to build data centers totaling 1.9 gigawatts of computing capacity by 2030. Nvidia is supplying hundreds of thousands of its most advanced chips as part of the deal.
AMD and AWS are also investing billions in the Saudi project. The goals include developing Arabic-language AI models and supporting local AI startups. Thanks to relaxed export rules from the Trump era, US tech companies are now able to participate directly in these national AI efforts across the Gulf region.
