- OpenAI is developing a 5-gigawatt, 10-square-mile AI data center in Abu Dhabi, larger than Monaco.
- Part of the Stargate project with G42, it dwarfs OpenAI’s 1.2-gigawatt Texas facility.
- U.S.-UAE AI ties face scrutiny over G42’s past Chinese connections, addressed by divestment.
- The project highlights the Middle East’s growing role in the global AI race.
OpenAI, the company behind ChatGPT, is making waves with plans for a massive data center in Abu Dhabi, according to a recent Bloomberg report. This ambitious project, which could span 10 square miles and use 5 gigawatts of power, is set to be one of the largest AI infrastructure developments in the world.
To give you a sense of scale, that’s bigger than the entire country of Monaco and equivalent to the energy output of five nuclear reactors. It’s a bold move for OpenAI, positioning the company as a key player in the global AI race, but it’s also raising eyebrows due to the complex web of international partnerships involved.
The Abu Dhabi data center is part of OpenAI’s Stargate project, a global initiative announced earlier this year in collaboration with SoftBank and Oracle. The goal? To build enormous data centers packed with cutting-edge computer chips to fuel the next generation of AI development.
While OpenAI is already working on a 1.2-gigawatt facility in Abilene, Texas, the Abu Dhabi campus would dwarf it, boasting more than four times the capacity. This massive scale underscores the growing demand for AI infrastructure as companies race to develop more powerful and sophisticated models.
The project is being developed in partnership with G42, a tech conglomerate based in Abu Dhabi. G42 is led by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security advisor and brother of the country’s ruler. OpenAI’s ties with G42 go back to 2023, when the two began collaborating to promote AI adoption across the Middle East.
During a visit to Abu Dhabi that year, OpenAI CEO Sam Altman praised the UAE’s early embrace of AI, noting its forward-thinking approach to the technology. This partnership is part of a broader relationship between the U.S. and the UAE, which has been fostering AI cooperation for years.
But it’s not all smooth sailing. The OpenAI-G42 partnership has sparked concerns among U.S. lawmakers, particularly because of G42’s past ties to Chinese entities. In 2023, U.S. officials flagged G42’s connections to companies like Huawei and the Beijing Genomics Institute, both of which are on U.S. blacklists. There were fears that G42 could serve as a conduit for advanced U.S. technology to reach China’s government.
In response, G42’s CEO announced in early 2024 that the company had divested all its Chinese investments and closed its physical presence in China. This shift paved the way for a $1.5 billion investment from Microsoft, OpenAI’s major shareholder, which also saw Microsoft president Brad Smith join G42’s board.
The Abu Dhabi data center represents a significant leap in the global AI landscape. It’s not just about size; it’s about the strategic importance of the Middle East in the AI race. The UAE’s investment in AI infrastructure, coupled with its partnerships with U.S. tech giants, positions it as a key hub for innovation.
For OpenAI, the project is a chance to secure its place at the forefront of AI development, but it also comes with the challenge of navigating geopolitical tensions and ensuring that its technology remains secure.
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