OpenAI and Abu Dhabi-based AI company G42 are partnering on a large artificial intelligence data center in the United Arab Emirates, a project that places Abu Dhabi more directly inside the global race to build national AI infrastructure.
The facility, called "Stargate UAE," is planned for Abu Dhabi and could eventually reach up to one gigawatt of computing power. Its first phase aims for 200 megawatts of capacity by the end of 2026.
What OpenAI and G42 are building
"Stargate UAE" is described as one of the world's largest data centers for artificial intelligence. The project is funded by G42 and will be operated by OpenAI and Oracle.
The partner list also includes Nvidia, Cisco and SoftBank. Nvidia hardware will power the new data center, with the company providing a significant share of the chips required for the project.
The roles described in the source point to a broad partnership rather than a single-company buildout. G42 supplies the funding base, OpenAI and Oracle are tied to operations, and US technology companies are part of the hardware and infrastructure stack.
That matters because AI data centers are not only buildings filled with servers. They are long-running infrastructure projects that depend on chips, networking, software access, operations and reliability. In this case, the partnership with OpenAI and Oracle is intended to provide operational stability and access to leading AI software.
Why Abu Dhabi is central to the plan
The project is part of a wider goal to make the UAE a global hub for artificial intelligence. The government is investing heavily in AI infrastructure and is using the country's strategic location to offer low-latency data services to markets in Africa and India.
As part of the initiative, ChatGPT will be made available for free in the United Arab Emirates. That gives the project a public-facing element alongside the data center buildout itself.
G42 is controlled by Sheikh Tahnoon bin Zayed al Nahyan, the UAE's national security advisor and brother of the country's president. The source frames the data center as part of a national strategy to attract international tech companies and position the UAE as an important destination for AI innovation.
The basic logic is straightforward: advanced AI systems require large amounts of computing capacity, and countries that host that capacity can become more important in the AI economy. Abu Dhabi is seeking that role through a project that connects local funding and strategy with major US technology partners.
The chip agreement behind the project
The source says the project was made possible by a special agreement with the Trump administration. Under that arrangement, the UAE can import up to 500,000 high-performance AI chips per year.
That deal contrasts with earlier export restrictions imposed under President Biden. In return, the UAE agreed to help build equivalent AI infrastructure in the United States.
The sovereign wealth fund MGX is already involved in the US-based "Stargate" project. That connection places "Stargate UAE" inside a two-way infrastructure arrangement rather than a one-country expansion alone.
The chip question is central because high-performance AI systems depend on access to advanced hardware. Without that supply, the ambition to build a gigawatt-scale AI data center would be much harder to realize.
- "Stargate UAE" could eventually reach up to one gigawatt of computing power.
- The first phase aims for 200 megawatts by the end of 2026.
- G42 is funding the project.
- OpenAI and Oracle will operate it.
- Nvidia, Cisco and SoftBank are also partners.
A wider Gulf race for "sovereign AI"
The Abu Dhabi project is part of a broader global race to build "sovereign AI," meaning national AI infrastructures that are state-controlled and tailored to local needs.
The source also points to Saudi Arabia's own multi-billion-dollar AI infrastructure project. A new state-owned company, Humain, backed by the Public Investment Fund (PIF), is partnering with Nvidia, AMD and Amazon Web Services.
That Saudi project aims to build data centers totaling 1.9 gigawatts of computing capacity by 2030. Nvidia is supplying hundreds of thousands of its most advanced chips as part of the deal, while AMD and AWS are also investing billions.
The goals in Saudi Arabia include developing Arabic-language AI models and supporting local AI startups. Together, these efforts show how AI infrastructure is becoming a national priority across the Gulf region.
Relaxed export rules from the Trump era have allowed US tech companies to participate directly in these national AI initiatives. That gives companies such as Nvidia, AMD, Amazon Web Services, Cisco, SoftBank, Oracle and OpenAI roles in projects that are tied not only to technology markets, but also to national strategy.
What the project signals
For OpenAI, "Stargate UAE" extends its infrastructure footprint through a partnership centered on Abu Dhabi. For G42 and the UAE, it brings major AI companies into a national effort to build computing capacity and attract international technology activity.
The project also shows how AI data centers are becoming strategic assets. Their value is not limited to hosting models or services. They can influence where AI companies operate, which regions gain low-latency access to AI services, and how governments position themselves in the next phase of artificial intelligence development.
With its planned scale, partner list and chip agreement, "Stargate UAE" is more than a local data center announcement. It is a sign that the competition to build AI infrastructure is moving quickly, and Abu Dhabi wants a central place in it.