The United States and the United Arab Emirates have announced a landmark agreement to co-develop a massive artificial intelligence (AI) data center complex in Abu Dhabi, part of a growing strategic partnership aimed at advancing global AI infrastructure.
Unveiled on Thursday during U.S. President Donald Trump’s state visit to the UAE, the project will eventually span over 10 square miles and carry 5 gigawatts of computing capacity—enough to power a major city. According to the U.S. Commerce Department, this marks the largest data center deployment outside the United States to date.
What the Agreement Involves
The project will begin with the construction of a 1-gigawatt AI data center, and gradually scale up to five times that size. The goal is to establish a long-term AI supercomputing footprint in the Middle East, allowing U.S.-based AI and cloud companies to expand their reach into the Global South, where demand for advanced tech infrastructure is rising.
While the Commerce Department did not name specific U.S. companies involved, Nvidia CEO Jensen Huang was seen attending one of President Trump’s UAE meetings, suggesting the chipmaker may be involved in some capacity. Nvidia has so far declined to comment.
Why It Matters
The move is a strategic step in both countries’ efforts to lead in AI development. For the U.S., the project aligns with President Trump’s vision of maintaining global technological dominance.
“By extending the world’s leading American tech stack to an important strategic partner in the region, this agreement is a major milestone in achieving President Trump’s vision for US AI dominance,” said Commerce Secretary Howard Lutnick in a statement.
The U.S. is keen to support domestic tech firms in establishing stronger international footholds, especially in regions where China is also seeking influence through digital infrastructure investments.
UAE’s AI Ambitions
For the UAE, the agreement supports its national goal to become a global leader in artificial intelligence by 2031. As oil-dependent economies look to diversify, AI and technology infrastructure are seen as key to long-term sustainability.
Ahead of Trump’s visit, UAE Minister of Education Sarah Al Amiri emphasized that the country is focused on”diversifying its economy, especially in the areas of AI and technology.” Investments like this one, she added, are essential for the region’s “post-oil future.”
U.S.-Based Data Centers Also Planned
In a reciprocal move, the White House announced Thursday that the UAE has committed to building or financing data centers in the U.S. that are “at least as large and as powerful” as those being developed in Abu Dhabi.
This two-way infrastructure commitment highlights the deepening digital alliance between the two countries—and marks one of the most ambitious international AI infrastructure initiatives to date.
