OpenAI is making its largest international expansion to date with the construction of a massive AI data center in Abu Dhabi. The initiative, known as Stargate UAE, is part of the United Arab Emirates (UAE) broader strategy to position itself as a global leader in AI technology.
The data center will have a planned capacity of 1 gigawatt, placing it among the most powerful AI data centers worldwide. The first phase, a 200-megawatt section, is expected to be operational by 2026, with full deployment still under development.
A major boost for the UAE’s AI ambitions
The project is led by G42, an AI firm controlled by Sheikh Tahnoon bin Zayed al Nahyan, the country’s national security adviser and brother to the president.
To secure the partnership, the UAE launched a high-profile diplomatic and investment campaign, reportedly pledging $1.4 trillion in US-bound investments and hosting prominent American tech executives in Abu Dhabi’s royal residences.
As part of the agreement, a customized version of ChatGPT will be made freely available to users across the UAE. The data center will be constructed by G42 and jointly operated by OpenAI and Oracle, with technical infrastructure support from NVIDIA, Cisco, and SoftBank.
OpenAI’s Stargate UAE announcement follows a major deal brokered during US President Donald Trump’s visit to the Gulf nation. The agreement includes provisions for the UAE to import up to 500,000 advanced AI chips annually, overturning previous export restrictions set by the Biden administration over concerns about the UAE’s technological alignment with China.
Under the accord, the Gulf has also committed to investing in the development of a US-based Stargate facility equal in scale and performance to the one in Abu Dhabi, according to David Sacks, the Trump administration’s special adviser on AI policy, as quoted by The Wall Street Journal.
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Part of a global AI network
The Stargate UAE project is part of a larger vision from OpenAI to build a globally distributed network of AI data centers. The company plans to construct up to 10 more data center sites in the US and is exploring international partnerships to replicate the Stargate model around the world.
OpenAI’s Chief Strategy Officer Jason Kwon is expected to begin a roadshow in the Asia-Pacific region soon to promote similar AI infrastructure development.
While OpenAI has not publicly disclosed the total cost of the UAE deployment, comparable US-based data center projects have been valued at over $10 billion.