OpenAI and UAE Launch $100B Project to Build World’s Largest AI Data Center

The initiative is being led by G42, a state-linked AI and cloud computing company based in Abu Dhabi, with OpenAI as the anchor tenant. While OpenAI has not formally confirmed its participation, sources familiar with the matter say an official announcement is imminent. The data center is projected to go live by 2026.

The Stargate data center is part of a broader push by the UAE to become a global epicenter for artificial intelligence and digital infrastructure. The Gulf nation has already launched the world’s first Ministry of Artificial Intelligence and is implementing long-term strategies to integrate AI across sectors including healthcare, transportation, finance, and education.

In recent months, the UAE has also accelerated its international partnerships. During President Donald Trump’s 2025 Gulf tour, the U.S. and UAE governments announced new agreements on semiconductor access and AI infrastructure, setting the stage for deeper technological cooperation between the two nations. As part of that pact, the Trump administration is reportedly preparing to ease export controls on advanced U.S.-made AI chips to the UAE.

With an anticipated output of 5 gigawatts, the Stargate project would rank among the most powerful data centers globally, on par with major hyperscale facilities operated by Amazon, Microsoft, and Google. The facility will be used to train OpenAI’s large language models and other AI systems, which require enormous computational resources.

This project reflects the increasing need for localized compute capacity outside traditional tech hubs like Silicon Valley, especially as demand for AI services grows worldwide. It also illustrates how resource-rich nations like the UAE are leveraging sovereign wealth and strategic partnerships to gain a technological edge.

The development builds on a deepening web of strategic ties among OpenAI, Microsoft, and UAE entities. In 2023, OpenAI forged a significant partnership with G42, aligning its AI services with the Emirates’ digital transformation plans. That same year, Microsoft announced a $1.5 billion investment in G42, granting the tech giant a foothold in the rapidly growing Middle Eastern AI market.

Microsoft, OpenAI’s largest backer, provides the computing backbone for OpenAI’s models via Azure cloud infrastructure. It remains unclear whether Microsoft will be directly involved in operating the Stargate facility, but sources say the company is supportive of the move and may contribute to backend integration and security protocols.

Also reportedly involved in the Stargate project is MGX, a UAE-based investment vehicle affiliated with Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s National Security Adviser. MGX has taken a stake in OpenAI, underscoring the country’s interest in acquiring both infrastructure and intellectual capital related to AI.

Analysts say the involvement of sovereign-linked investors like MGX and state-backed companies like G42 reflects a long-term strategy by the UAE to own key components of the global AI value chain, including data centers, chip imports, and AI R&D.

If completed on schedule, Stargate will place the UAE at the forefront of global AI innovation, not just as a user of AI technologies but as a critical provider of infrastructure and compute power.

For OpenAI, the project could help alleviate growing concerns over compute bottlenecks in the U.S., while expanding its international footprint and securing regional clients in the Middle East, North Africa, and South Asia.

As AI continues to reshape economies, labor markets, and geopolitics, the Stargate project represents a new axis of influence, linking American innovation with Gulf capital and ambition.

The formal announcement of the Stargate project is expected in the coming weeks, with site construction already underway. Once operational, the facility will serve as a global nerve center for AI research, training, and deployment, drawing talent and investment to the UAE while deepening OpenAI’s global integration.

For now, the world watches as Abu Dhabi and OpenAI prepare to light the fuse on what could become one of the defining infrastructure projects of the 21st century AI revolution.