OpenAI announces a massive 5-gigawatt data center in Abu Dhabi and new data-residency features for UAE businesses as part of its global Stargate project.
OpenAI is significantly expanding its footprint in the United Arab Emirates, announcing plans for a colossal data center campus in Abu Dhabi and introducing new features tailored for UAE businesses. This strategic move aims to bolster AI infrastructure and support the region's growing demand for advanced artificial intelligence solutions.
Key Takeaways
OpenAI is set to be a primary tenant in a 5-gigawatt data center campus in Abu Dhabi, potentially one of the world's largest AI infrastructure projects.
A new data-residency option is being rolled out for UAE businesses, designed to help them meet national compliance and operational requirements.
This expansion is part of OpenAI's broader 'Stargate' project, aimed at building massive data centers globally to support AI development.
A Data Center of Unprecedented Scale
OpenAI is reportedly partnering to develop a staggering 5-gigawatt data center campus in Abu Dhabi. This facility is projected to span approximately 10 square miles, consuming power equivalent to five nuclear reactors. This scale far surpasses any AI infrastructure previously announced by OpenAI or its competitors, even dwarfing its planned U.S. 'Stargate' campus in Abilene, Texas, which is expected to reach 1.2 gigawatts.
The project is a collaboration with G42, an Abu Dhabi-based technology conglomerate, and is a key component of OpenAI's ambitious 'Stargate' initiative. This global venture, announced in January, involves building extensive data centers stocked with powerful computer chips to fuel AI development.
Tailored Solutions for UAE Businesses
In parallel with the infrastructure development, OpenAI has launched a new data-residency option specifically for organizations in the UAE. This feature is designed to assist businesses in adhering to national compliance, governance, and operational standards while scaling their AI adoption. The move addresses growing concerns among businesses regarding data localization and regulatory frameworks as AI becomes more integrated into their operations.
Farouk El Hamzawi, Head of Enterprise for OpenAI MENA, stated, "Organisations across the UAE are adopting AI at a remarkable pace, supported by the Government’s clear long-term vision and commitment to technology leadership." He added that the new data-residency option provides UAE institutions with greater choice and confidence as they build with AI, aligning with the UAE's Vision 2031 strategy.
Strategic Partnerships and Geopolitical Context
The UAE project emerges amidst a backdrop of deepening AI ties between the U.S. and the UAE. OpenAI's relationship with the UAE dates back to a 2023 partnership with G42, aimed at promoting AI adoption in the Middle East. OpenAI CEO Sam Altman has previously lauded the UAE's early commitment to AI.
However, these collaborations have also drawn scrutiny. Concerns were raised by U.S. officials in late 2023 regarding G42's past relationships with entities linked to China. Following pressure, G42 announced a strategic shift, divesting its China investments. Subsequently, Microsoft, a significant OpenAI shareholder, invested $1.5 billion in G42 and its president joined G42's board.
OpenAI emphasizes that its UAE data-residency rollout is built upon existing enterprise privacy and security commitments, including data encryption, configurable retention policies, and a Data Processing Addendum. Importantly, enterprise or API data will not be used to train OpenAI models by default.
Sources
Latest posts
Discover other pieces of writing in our blog
