[News] OpenAI to Build World’s Largest AI Data Center in UAE under Stargate Initiative

According to Mydrivers, citing Reuters and Bloomberg, OpenAI has entered into a strategic partnership with UAE-based G42 to jointly develop the world’s largest AI data center cluster in Abu Dhabi. This project is part of OpenAI’s “Stargate” initiative and marks the first international expansion of the program, the report notes.

The first phase of the initiative is the 1-gigawatt Stargate UAE project, which is being developed by the state-supported UAE company G42 in collaboration with U.S. firms OpenAI, Oracle, NVIDIA, and Cisco Systems, along with Japan’s SoftBank Group, as Reuters notes.

The data center’s first cluster will deliver 1GW of capacity, with 200MW expected to go online by 2026, as highlighted in the project’s press release.

As indicated by Mydrivers, citing Reuters, the 10-square-mile (26-square-kilometer) site in Abu Dhabi is expected to eventually host 5 gigawatts of data centers—potentially making it the largest AI infrastructure project announced to date by OpenAI or any of its major competitors, as Bloomberg notes.

OpenAI is expected to be the primary user, utilizing 1GW of computing resources, while the remaining capacity may be made available to other companies, as noted by Mydrivers, citing Bloomberg.

Reuters also notes that the Stargate UAE project will utilize NVIDIA’s Grace Blackwell GB300 systems, the company’s most advanced AI servers to date.

Shortly after Trump has dethroned Biden’s proposed AI Diffusion rules, the UAE has reportedly emerged as the first to strike a breakthrough deal with Washington. According to Reuters, the U.S. will allow the country to import 500,000 of NVIDIA’s most advanced AI chips annually starting in 2025, with the agreement likely running through 2027—and possibly until 2030.

As noted by CNBC, Stargate is a collaborative AI infrastructure initiative launched in January by OpenAI, Oracle, and SoftBank. At its announcement, the companies pledged an initial investment of $100 billion, with plans to commit an additional $500 billion over the following four years.

OpenAI is accelerating its global expansion, with Chief Strategy Officer Jason Kwon set to visit Japan, South Korea, Australia, India, and Singapore next week. These moves reflect the company’s broader strategy to build a global AI infrastructure network, as reported by Mydrivers.

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(Photo credit: G42)