OpenAI has committed $10 billion to build a data center in Abu Dhabi that will stretch across 10 square miles – a facility larger than Monaco. The center will run on 5 gigawatts of power, matching the output of five nuclear reactors combined. This dwarfs the company’s 1.2-gigawatt Texas facility currently under construction in Abilene.
Abu Dhabi tech firm G42 will lead the construction effort. The company recently sold off its Chinese investments after U.S. officials raised concerns about connections to Huawei and Beijing Genomics Institute. Microsoft then put $1.5 billion into G42, placing its president Brad Smith on the board.
The computing hub brings together SoftBank, Oracle, Nvidia, and Cisco under OpenAI’s Stargate program. While OpenAI will occupy a main portion, other tech companies will share the 5-gigawatt capacity. The location puts faster AI processing within reach for users across Asia, Europe and Africa.
OpenAI CEO Sam Altman spoke plainly about the choice during his 2023 visit: “The UAE has been talking about AI since before it was cool.” The May 2025 launch of Phase 1 brought UAE President Sheikh Mohamed bin Zayed Al Nahyan and U.S. President Donald Trump together, showing the political weight behind this tech investment.
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U.S. Commerce Secretary Howard Lutnick focused on maintaining American tech leadership through secured partnerships. The U.S. government now works to allow advanced Nvidia AI chip exports to the UAE, chips the center needs to process AI tasks.
The practical hurdles remain substantial. The facility must manage desert heat while running powerful systems. The massive power usage raises environmental concerns. The project faces challenges in data security protocols and attracting specialized AI and data center talent to the region.
For UAE consumers and businesses, the center fits into the country’s AI Strategy 2031 push away from oil dependence. The project aims to attract foreign investment and advance UAE’s AI development capabilities.
The success of this computing facility depends on careful management of the technical demands, environmental impact, and operational needs. Every decision affects the project’s ability to deliver real economic gains while meeting security and sustainability standards.
