OpenAI Plans Data Centers in UAE as Part of $500 Billion Global AI Expansion

Prime Highlights:

OpenAI is reported to be constructing data centers in the United Arab Emirates (UAE) as part of an expansion to bring its AI infrastructure worldwide.
The project is part of the Stargate program, which is a combined $500 billion investment in AI infrastructure by the world’s leading partners.

Key Facts:

OpenAI is negotiating with the UAE to construct data centers, and an announcement is said to be releasing soon.
SoftBank, Oracle, and UAE MGX investment vehicle are some of the top players involved in the Stargate project.

Key Background:

OpenAI’s potential move to establish data centers in the UAE marks a strategic expansion of its global AI infrastructure footprint. All this thanks to the Stargate project, a $500 billion investment initiative started in the early part of 2025. Stargate is an initiative that aims to create geographically resilient AI infrastructure that will provide more efficient and stable AI services worldwide. OpenAI and its primary partners such as SoftBank, Oracle, and UAE investment firm MGX sponsored by royal families are spearheading the project.

The UAE has also been positioning itself as a possible high-tech investment and artificial intelligence hub. Some such collaborations include Abu Dhabi-based artificial intelligence company G42 partnering with OpenAI in the massive investment by Microsoft, one of the largest investors in OpenAI. MGX investment in Stargate project further lends strength to the UAE’s aspirations to be an AI regional hub.

Beyond OpenAI’s plans, the broader Middle East region is investing heavily in AI infrastructure. Saudi Arabia, for example, is developing multi-billion-dollar AI data center campuses as part of its Vision 2030 economic diversification strategy. These efforts illustrate the increasing significance of the Middle East in the global AI race.

Having recently opened up new data centers in the UAE, OpenAI not only extends capacity in its campuses but also on the cusp of being able to cater to customers all over the world and disseminate democratic AI throughout the rest of the countries. The move shows the level at which OpenAI is enthusiastic about technological advancement and cooperation throughout the globe in the new fast-moving-changing days of AI.