OpenAI, the San Francisco-based artificial intelligence research company, is collaborating with the United Arab Emirates in a major initiative to build one of the world’s largest data centre complexes, according to sources familiar with the matter. The strategic partnership aims to significantly bolster AI infrastructure in the Middle East, positioning the UAE as a global hub for advanced AI development and deployment.

A Landmark Collaboration in AI Infrastructure

The multi-billion-dollar project is reportedly being spearheaded by G42, an Abu Dhabi-based AI and cloud computing company known for its close ties to the UAE government. G42 has previously partnered with OpenAI on various AI initiatives, and this new data centre venture marks a deepening of that relationship.

The planned hyperscale facility—anticipated to span several hundred megawatts of capacity—will reportedly provide the computing power necessary to support OpenAI’s expanding suite of generative AI models, including GPT-5 and future iterations. The infrastructure is expected to house tens of thousands of AI-optimized chips, including NVIDIA’s latest GPUs and potentially custom silicon developed in collaboration with partners.

UAE’s Vision for an AI Future

The project is aligned with the UAE’s ambitious national AI strategy, which seeks to diversify the country’s economy beyond oil and establish it as a leader in digital innovation. By hosting a data centre of this magnitude, the UAE would not only gain access to advanced AI capabilities but also attract global AI research and development to the region.

Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, has consistently emphasized the country’s intent to “lead in the responsible development of AI,” and this latest development appears to be a tangible step in that direction.

Data Sovereignty and Strategic Implications

Industry experts view this project as part of a broader geopolitical move, as nations and corporations increasingly seek to control their own AI infrastructure rather than relying solely on U.S.- or China-based cloud services. By investing heavily in local capacity, the UAE aims to ensure data sovereignty and reduce its reliance on foreign providers.

Moreover, OpenAI’s involvement in this endeavour may help address growing global demand for AI services, which has strained existing cloud infrastructure in recent months.

Strategic and Ethical Considerations

The collaboration has raised questions around the ethical deployment of AI technology and its governance. OpenAI has maintained that its partnerships are guided by principles of safety, transparency, and alignment with human values. It remains to be seen how these principles will be implemented in a region where digital rights and regulatory frameworks differ markedly from those in the West.

OpenAI CEO Sam Altman has previously toured the Gulf region to promote international AI cooperation. In public statements, Altman has stressed the importance of ensuring that AI technologies benefit humanity broadly, not just the tech elite.

Looking Ahead

Construction on the data centre is expected to begin later this year, with phased operations potentially starting as early as 2026. When completed, it could rank among the top five largest data centres globally by compute capacity.

This development signifies a dramatic shift in the global AI landscape, with emerging markets like the UAE stepping into central roles. As competition intensifies for AI talent, data, and infrastructure, this project could become a model for future cross-border collaborations in the AI era.