OpenAI Invests in UAE: Massive Data Centers on the Horizon

OpenAI Opens New Offices in Dubai, Commits to Developing Large-Scale AI Infrastructure in the UAE As part of its continued commitment to the development of large-scale artificial intelligence infrastructure.

OpenAI has unveiled plans to invest heavily and establish world-class data centers in the United Arab Emirates (UAE), making it the organization’s most significant global investment to date. Stargate UAE will be one of the world’s largest AI computing clusters and initially be one gigawatt in capacity.

The project is a partnership between OpenAI and G42, an Abu Dhabi-based artificial intelligence company. The data center, which has an initial capacity of 200 megawatts, is projected to become operational by the end of 2026.

Full scope and time frame for the other phases is yet to be determined, but industry sources expect the larger project to represent a multi-billion dollar investment – and potentially on par with the scale of similar-sized data centre expansion in the US.

This partnership also fulfils the UAE’s ambition to become a global epicentre for AI and innovation. The government has indicated it is willing to spend a substantial amount of money investing in AI companies and infrastructure, it has publicly announced that it sees the potential for AI to drive economic growth and job creation.

Under the agreement, OpenAI will release an advanced version of its highly popular ChatGPT model for use by all citizens in the UAE. This is also expected to facilitate wider access to AI technology and enhanced AI literacy in sectors like government services, health care, education and transportation.

The “Stargate UAE” is backed by big names in technology such as Oracle, NVIDIA, Cisco, SoftBank besides offering their expertise in managing and outfitting the giant data center.

The move comes after US President Donald Trump visited the Middle East earlier this month, where a number of AI-related deals were said to have been discussed and finalised.

Significantly, the pact with the UAE will also involve the export of a large quantity of advanced AI chips each year – a ratification of earlier bans on technology exports that were relaxed.

The company also announced that the UAE is its first significant international deployment of the AI infrastructure platform.

The company said it wants to create similar partnerships in other countries and regions with the challenge as part of its “OpenAI for Countries” initiative, which would make it possible to form a globally distributed network of AI that is democratic and compatible with open markets.

The launch of these large data centres in the UAE will greatly improve the country’s computational performance to support the rapid growth in demand for AI computing because better computational performance means better AI models, voices and images – and that’s what we’re delivering, to support and empower even more innovation.

“This investment in AI infrastructure will positively impact AI research and development and accelerate breakthroughs in knowledge and technology across a range of fields, and ensures that the UAE remains at the forefront of the global AI landscape”**.