New UAE-US Data centre to make Abu Dhabi a global AI powerhouse
18 May 2025 22:10
KHALED AL KHAWALDEH (ABU DHABI) In a landmark announcement that could reshape the artificial intelligence (AI) landscape across the Middle East and beyond, the UAE and the US have unveiled plans for a massive 5GW AI data centre campus in Abu Dhabi. The project, described as the largest of its kind outside the US, will position the UAE as a strategic digital hub capable of serving nearly half of the world's population.Unveiled at Qasr Al Watan on Thursday, in the presence of President His Highness Sheikh Mohamed bin Zayed Al Nahyan and US President Donald Trump, the project launched its first 1GW data centre, which would be part of a sprawling 10-square-mile campus - an area larger than the European principality of Monaco."To put the new 5GW AI campus in Abu Dhabi (UAE) into perspective, it would support up to 2.5 million NVIDIA B200s," Lennart Heim, AI expert at RAND Corporation, said in an X post that quickly gained traction across the tech community."That's bigger than all other major AI infrastructure announcements we've seen so far."
Why Data Centres? Data centres are the physical infrastructure that powers AI applications by providing the massive computing resources needed to process complex algorithms, train large language models, and store vast datasets. These facilities house specialised hardware - including the NVIDIA B200s, a highly sought-after AI accelerator chip - designed to handle the massive computing demands of artificial intelligence, particularly generative AI. Having AI data centres located locally is critical because it reduces data latency and improves real-time processing capabilities, which are essential for applications like autonomous vehicles, smart city systems, and national security technologies.Once fully operational, the Abu Dhabi campus will provide low-latency compute power to a market spanning nearly 3.5 billion people within a 2,000-mile radius, covering Africa, South Asia, and parts of Europe. It will become the go-to source for AI computing in a large part of the world - with the UAE's prime location once again giving it an advantage in the era of AI, much like it has in logistics, air travel and other industries. Craig Scroggie, CEO of NEXTDC and Chairman of La Trobe University Business School, said this will not only generate substantial revenues for the UAE economy but will give them a geopolitical footing in the emerging world that is likely to be dominated by the technology. "This initiative positions the UAE as a credible AI infrastructure hub and signals a clear alignment of capital, compute, and policy," Scroggie in a LinkedIn post.
"The scale, governance model, and partner ecosystem reflect a growing trend - AI infrastructure is no longer just a commercial play, it's becoming a geopolitical instrument."
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