OpenAI is taking a bold step in expanding its global AI infrastructure by anchoring one of the world’s largest data center developments in Abu Dhabi. The proposed project, in partnership with UAE-based technology firm G42, will create a 5-gigawatt data center campus spanning 10 square miles—surpassing the total land area of Monaco and dwarfing any existing AI infrastructure venture.

An Unprecedented Scale of AI Infrastructure

The upcoming data center in Abu Dhabi is part of OpenAI’s ambitious Stargate project, a global initiative launched in January in collaboration with SoftBank and Oracle. Designed to accelerate AI research and deployment, Stargate aims to build some of the most powerful computing hubs on the planet.

The Abu Dhabi campus is projected to consume as much power as five nuclear reactors, vastly outscaling Stargate’s first installation in Abilene, Texas, which is expected to reach 1.2 gigawatts. This leap signals OpenAI’s determination to establish itself as a global leader in AI infrastructure by securing unprecedented computing resources.

Strategic Partnership with G42

The development is being led by G42, a rapidly growing technology conglomerate headquartered in Abu Dhabi. OpenAI first partnered with G42 in 2023, a collaboration aimed at advancing AI capabilities throughout the Middle East. In a speech during that year, OpenAI CEO Sam Altman praised the UAE’s forward-thinking stance, saying the country was “talking about AI since before it was cool.”

With this new initiative, G42 cements its role as a critical regional partner in the AI race, hosting a facility that could serve as a central hub for AI model training, deployment, and global innovation.

Geopolitical Tensions and Scrutiny

While the project highlights deepening U.S.-UAE cooperation in the AI sector, it has also raised concerns in Washington. U.S. lawmakers and officials previously scrutinized G42 over its historical ties to blacklisted Chinese entities such as Huawei and the Beijing Genomics Institute, as well as reported connections to Chinese intelligence operations.

These concerns emerged in late 2023, shortly after OpenAI’s cooperation with G42 intensified. However, G42’s CEO responded in early 2024 by confirming that the company had divested from all Chinese investments and closed its physical operations in China in a bid to realign with Western standards and partnerships.

Microsoft’s Strategic Investment

In a move seen as a vote of confidence, Microsoft—OpenAI’s largest investor—announced a $1.5 billion investment in G42 shortly after the divestment. As part of the agreement, Microsoft President Brad Smith joined G42’s board of directors, further strengthening the strategic alliance between the two companies.

This investment highlights Microsoft’s deepening commitment to AI development in the Middle East and reinforces the strategic value of G42 and its partnership with OpenAI.

The Road Ahead

The Abu Dhabi data center project is expected to become a cornerstone in the global race for AI supremacy. Its scale and complexity reflect OpenAI’s growing ambition to lead not just in AI models but also in the infrastructure that powers them.

While the venture showcases the potential of cross-border collaboration in cutting-edge technologies, it also underscores the geopolitical sensitivities of global AI development, where innovation and international trust must go hand in hand.