OpenAI teams up with UAE to build world’s largest data center

OpenAI is deep in talks to help build a 5-gigawatt data center campus in Abu Dhabi, one that could end up being the largest AI facility on the planet, according to Bloomberg.

The plan, still unofficial, would make OpenAI a main tenant at the site, even though the deal hasn’t been finalized yet. People familiar with the negotiations reportedly said a formal announcement is likely coming soon, as construction plans are already being discussed among US and UAE officials.

Once completed, the campus will span 10 square miles and burn through as much electricity as five nuclear plants. Not all of that power will go to OpenAI. Several companies are involved in this buildout, though OpenAI would be the most prominent name on the campus.

Bloomberg had previously reported that the company had been weighing the UAE as a potential location for a large-scale facility, and now those plans appear to be moving forward. The Abu Dhabi-based AI company G42 will lead construction.

The company, known for past ties to China , is partnering with unnamed US firms to deliver the site. The deal came together just as President Donald Trump arrived in the UAE for his Middle East trip focused on AI cooperation.

Trump’s visit pushes AI talks with Abu Dhabi

Trump’s stop in the Gulf region wasn’t just a photo op. While he was on the ground, US and UAE officials were still negotiating new AI partnerships, including deals to supply the UAE with over a million Nvidia chips.

The chips are essential for training and scaling large language models like the ones used by OpenAI. It’s part of a broader push by Trump’s administration to boost US AI exports and block China from gaining influence in key markets like the Middle East.

The massive data center is also part of OpenAI’s Stargate initiative , which was first announced in January during a joint event with Trump. Stargate is a long-term plan between OpenAI, Oracle, and SoftBank to spend up to $500 billion building out AI infrastructure.

So far, the first US-based Stargate facility is set to be 1.2 gigawatts — nowhere near the size of what’s now being planned in Abu Dhabi. OpenAI has said it eventually wants to build ten sites inside the US, but this UAE project would beat all of them in both scale and speed.

The deal isn’t without tension. Some members of Trump’s administration are worried about the national security risks of sending powerful AI tech overseas, especially to countries that have had close relationships with China.

The Nvidia chips, in particular, are seen as sensitive hardware. Officials have privately raised concerns about whether giving advanced semiconductors to foreign firms could weaken US control over AI development.

MGX and G42 deepen ties with OpenAI

This wouldn’t be OpenAI’s first link to Abu Dhabi. The company partnered with G42 in 2023, laying the groundwork for the current deal. Another Abu Dhabi-based group, MGX, is also involved.

MGX took part in OpenAI’s $6.6 billion funding round that closed in October and is now considering further investment into the Stargate program. One person involved in the discussions said MGX may become a stakeholder in the new facility as well.

Trump’s broader AI strategy is to expand American tech overseas while keeping a close grip on how and where it’s deployed. By backing the Abu Dhabi facility, the US is signaling it wants to control the narrative around global AI growth — even if that means building the biggest sites outside its own borders.

OpenAI’s participation in the UAE data center, while not yet official, would represent the first time the company helps launch a facility of this size outside the United States.

For now, there’s no launch date and no confirmation from OpenAI. But the signals are clear. With G42 building, Trump pushing, MGX investing, and OpenAI preparing to move in, the UAE is about to become the new front line in the AI infrastructure race.

Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now