OpenAI is set to establish a remarkable 5-gigawatt data center campus in Abu Dhabi, positioning itself as a key anchor tenant in what could emerge as one of the largest AI infrastructure projects globally, according to a recent report by Bloomberg. This facility is expected to cover an astonishing 10 square miles and consume power equivalent to five nuclear reactors, far exceeding any existing AI infrastructure currently operated by OpenAI or its competitors. For context, this area is larger than Monaco.
Developed in collaboration with G42, an Abu Dhabi-based tech conglomerate, this project is part of OpenAI’s expansive Stargate initiative. Announced earlier in January, the Stargate project envisions the construction of massive data centers worldwide stocked with advanced computer chips to facilitate AI development, in partnership with SoftBank and Oracle. While OpenAI’s first Stargate campus in Abilene, Texas, is projected to reach a capacity of 1.2 gigawatts, this new Middle Eastern campus would more than quadruple that power capacity.
This initiative comes at a time when the U.S. and UAE are strengthening their AI ties, a relationship that has been developing over several years and raises concerns among some U.S. lawmakers. OpenAI’s collaboration with the UAE began with a partnership with G42 in 2023, aimed at fostering AI adoption in the Middle East. During a talk in Abu Dhabi, OpenAI CEO Sam Altman praised the UAE, highlighting its early commitment to AI as a forward-thinking endeavor.
However, the complexity of these relationships cannot be overlooked. G42, founded in 2018 and chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the national security advisor of the UAE, has raised alarms among U.S. officials who worry that G42’s connections could facilitate Chinese access to sensitive U.S. technology. Concerns have been amplified due to G42’s previous ties with blacklisted entities such as Huawei and the Beijing Genomics Institute. In response to pressure from U.S. lawmakers, G42’s CEO announced in early 2024 plans to divest from its Chinese investments, indicating a strategic pivot away from any physical presence in China. Shortly thereafter, Microsoft, a significant shareholder in OpenAI, made a $1.5 billion investment in G42, with its president, Brad Smith, joining the board of directors, further intertwining the AI ambitions of both companies in the region.