UAE to develop one of the world's largest data centers with OpenAI's assistance

UAE to develop one of the world's largest data centers with OpenAI's assistance

The United Arab Emirates (UAE) is poised to expand its technological infrastructure significantly, with the development of one of the world's largest data centers, facilitated by OpenAI. This ambitious project, which is part of a broader initiative to enhance the UAE's AI capabilities, is expected to have a substantial impact on the global tech landscape.

According to sources familiar with the matter, OpenAI is considering a deal to build new data center capacity in the UAE, which could substantially increase its footprint in the Middle East [1]. The deal, which is not yet finalized, may be announced during President Donald Trump’s visit to the region on May 13, 2025. Trump's visit coincides with a broader tour by tech leaders, including OpenAI Chief Executive Officer Sam Altman, who is also in the region.

The potential deal is part of a series of investment activities during Trump's Middle East trip. The UAE has committed to investing $1.4 trillion in the U.S. over the next 10 years, with a significant portion of this investment earmarked for advanced technology and infrastructure projects [2]. This investment includes plans to grant the UAE access to advanced semiconductors, which are crucial for AI development.

The project hinges on the UAE's ability to import cutting-edge Nvidia chips, which are used to develop and train AI models. The U.S. has restricted the sale of these chips to the UAE since 2023, but Trump officials are closing in on an accord to ease the Gulf nation’s access. The deal under consideration could see the UAE import more than a million advanced Nvidia chips, with the majority allocated to U.S. companies building data centers in the Gulf nation [1].

The development of this data center is expected to boost the UAE's AI capabilities, positioning it as a major player in the global tech market. The UAE has already established a strong relationship with OpenAI, with a 2023 partnership with Abu Dhabi’s AI firm G42 and a $1.5 billion investment from OpenAI-backer Microsoft Corp. in 2024 [1].

The Trump administration's willingness to ease semiconductor restrictions is a significant shift from the Biden-era policies. The administration is currently drafting new global chip regulations to address security and strategic concerns, with a particular focus on preventing China from accessing advanced AI hardware [1].

The development of this data center is not only a strategic move for the UAE but also a significant opportunity for OpenAI and other tech companies involved. The project is expected to create jobs and stimulate economic growth in the region, while also positioning the UAE as a global hub for AI innovation.

References:
[1] https://www.bloomberg.com/news/articles/2025-05-13/openai-weighs-uae-data-center-deal-as-trump-set-to-visit
[2] https://circuit.news/2025/05/15/uae-welcomes-trump-amid-anticipation-of-ai-chip-deals-with-u-s/