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Report: OpenAI and UAE Partner to Build Massive Data Center

by Sneha Singh
May 18, 2025
in Tech
Reading Time: 3 mins read
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Report: OpenAI and UAE Partner to Build Massive Data Center
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Tech giant OpenAI will be part of building what may be one of the world’s biggest data centres in the United Arab Emirates, a Bloomberg News report published Friday reported. ChatGPT’s developer is set to be one of the anchor tenants on a historic 5-gigawatt data center campus Abu Dhabi is developing. 

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Although OpenAI’s involvement has yet to be officially announced, people familiar with the project indicate that a formal announcement will be coming.

This comes after Thursday’s signing between the United States and the UAE, which will have the Gulf nation construct the biggest AI campus beyond the US border.

OpenAI Plans Major 5-Gigawatt Data Center in UAE to Expand AI Capabilities

The project is a major build-out of AI infrastructure worldwide and marks increased significance of the Middle East region to the technology industry. The data center would be bigger than most current data centers with a target size of 5 gigawatts and would offer the huge processing capacity required to train and operate complex AI models.

Industry analysts note that such huge centers are now the standard as AI models become increasingly complex and require higher computational power. OpenAI’s GPT models that power its ChatGPT service need high computing power to function efficiently.

OpenAI may build data centers in the UAE | TechCrunch
Credits: TechCrunch

“This is a strategic play for OpenAI as they continue to expand their business,” said technology industry consultant Maya Richards. “Having access to that kind of computing power could really accelerate their AI research and development very rapidly.”

The UAE has been vying aggressively to be a world technology hub, investing heavily in the digital infrastructure and the creation of artificial intelligence. The new project aligns with the country’s vision to diversify the economy from oil and emerge as a world leader in emerging technologies.

Microsoft, which has invested billions of dollars in backing OpenAI, will profit from this expansion as well. The tech company has been integrating OpenAI’s technology throughout its product line and has also significantly increased its partnership with the AI lab.

When contacted for comment on the reported data centre plans, OpenAI didn’t reply initially.

The international competition to be the leader in AI has picked up pace in recent years as countries and private actors are in a race to gain a technological advantage. 

UAE’s Landmark AI Infrastructure Investment Reshapes Global Computing Landscape

Data centres are the real estate behind this, where the computing capacity to train and operate increasingly powerful AI resides.

Environmental issues will most likely be kept in mind while planning, as the data centres of this size use enormous amounts of energy and water for cooling systems. The UAE’s low-cost energy source may have been a consideration for the location, but information on plans for the sustainability of the facility is not available at this time.

If developed as set out, this data centre campus would be one of the largest AI infrastructure investments in the world and potentially transform the competitive landscape in advanced computing.

The UAE-US agreement signed Thursday further solidifies this track, enshrining cooperation on big-scale AI development between the two nations and setting the stage for further American tech firms to establish in the region.

Industry watchers will be keeping their breath for the official confirmation, which might give more information about levels of investment, construction schedules, and technology used in the plant.

Tags: ChatGPTData CentrerOpen AIUAE-US
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Sneha Singh

Sneha is a skilled writer with a passion for uncovering the latest stories and breaking news. She has written for a variety of publications, covering topics ranging from politics and business to entertainment and sports.

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