OpenAI has officially launched its first large-scale data center initiative in the Middle East, announcing the Stargate UAE project — a massive artificial intelligence infrastructure hub that will be developed in Abu Dhabi with a consortium of global tech giants including Cisco, Oracle, Nvidia, SoftBank, and the UAE’s G42.
The facility will have a target capacity of 1 gigawatt (GW), with the first 200 megawatts (MW) expected to come online in 2026. The announcement, made Thursday via OpenAI’s blog, marks a significant milestone in the company’s plan to build out global AI infrastructure under a new initiative called “OpenAI for Countries.”
“This is […] the first partnership under OpenAI for Countries?, our new global initiative to help interested governments build sovereign AI capability in coordination with the U.S. government,” the company wrote. “Under the partnership, the UAE will become the first country in the world to enable ChatGPT nationwide — giving people across the country the ability to access OpenAI’s technology.”
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The Stargate UAE data center will not only be one of the largest AI-focused data centers globally but will also serve as a sovereign digital asset for the UAE, providing advanced AI capabilities across the wider region. OpenAI said the facility would be able to provide computing capacity within a 2,000-mile radius, effectively extending its AI services to parts of Africa, Asia, and Eastern Europe.
OpenAI is establishing one of its most significant regional footholds outside of the United States by partnering with the Abu Dhabi-based G42, an artificial intelligence and cloud computing firm backed by the Emirati government. The project is also designed to align with U.S. strategic interests, following a landmark deal sealed during Donald Trump’s recent visit to the Gulf nation – to build what will be the largest artificial intelligence campus outside US borders.
OpenAI’s reference to working “in coordination with the U.S. government” thus underscores Washington’s influence in shaping how AI infrastructure is distributed globally, particularly in allied countries.
The UAE, in turn, gains a powerful edge in its race to become a digital economy leader. It positions itself as a key destination for compute-intensive AI research and deployment by hosting one of the world’s largest AI clusters.
A Multinational Effort with Major Tech Players
Several major technology companies are involved in the project, underlining the scale and ambition behind Stargate UAE. Oracle is expected to provide cloud and database infrastructure; Nvidia will likely supply the high-performance chips and GPUs needed to power large language models; Cisco will handle the networking infrastructure; and SoftBank, through its Vision Fund, may be contributing funding and strategic support.
OpenAI’s long-time partner Microsoft, which has invested over $13 billion in the company, is not named as a direct stakeholder in the UAE project, though its Azure platform continues to power much of OpenAI’s existing cloud operations globally. However, OpenAI’s new sovereign infrastructure strategy indicates a move toward more diversified partnerships that allow countries to build AI capabilities on their own terms — albeit with safeguards endorsed by the U.S.
G42, the Emirati tech firm anchoring the UAE end of the partnership, is already a known player in AI development and has existing collaborations with both Microsoft and OpenAI. In recent months, the company has been distancing itself from its earlier ties with Chinese tech firms, including withdrawing from agreements involving Chinese-made hardware, in a bid to strengthen ties with U.S. allies and tech ecosystems.
ChatGPT, Nationwide and Unrestricted
In addition to the infrastructure rollout, the Stargate UAE project will make the UAE the first country in the world to provide nationwide access to ChatGPT. This suggests that AI applications powered by OpenAI — including generative tools for text, code, and potentially voice or video — will be integrated into various aspects of public life, including education, government services, business development, and digital governance.
The implementation of ChatGPT across a national digital framework is expected to serve as a model for future deployments under the “OpenAI for Countries” initiative. Though few technical details have been disclosed, such a nationwide rollout could involve government APIs, localized language models, AI support for public administration, and regulated access frameworks tailored to regional governance norms.
The UAE already ranks among the top countries in digital government initiatives, and this integration could further position it as a front-runner in AI adoption at the state level.
A Week of Escalating AI Infrastructure Rivalries
OpenAI’s announcement came just days after Elon Musk, CEO of Tesla and founder of OpenAI’s rival firm xAI, revealed that his company plans to build what he described as “the world’s first gigawatt-scale AI training cluster.” The timing of Musk’s statement appeared to preempt OpenAI’s news — although OpenAI’s UAE data center now takes the lead as the first major gigawatt-class facility officially announced with clear partners and a deployment timeline.
While xAI’s proposed project remains largely conceptual, OpenAI’s Stargate UAE has now moved into the development phase. The project not only intensifies the race for AI infrastructure supremacy but also places the Middle East, particularly Abu Dhabi, at the center of a high-stakes geopolitical and technological transformation.
While OpenAI did not disclose the financial cost of the Stargate UAE initiative, data centers of this magnitude typically require multi-billion-dollar capital investment. Estimates for similar-sized facilities, especially those tailored for AI workloads, often surpass $10 billion when factoring in land acquisition, energy infrastructure, cooling systems, advanced chips, and cybersecurity.
The 1GW capacity suggests Stargate UAE could become one of the largest AI-dedicated installations on the planet. For comparison, most hyperscale data centers operated by Amazon Web Services, Google Cloud, or Microsoft Azure range from 100MW to 500MW.
OpenAI had earlier stated that its Stargate project, first revealed in the U.S. as part of long-term infrastructure ambitions, could require as much as $100 billion in global capital. The UAE hub now appears to be the first concrete step toward realizing that scale.
What It Means for AI Development
With Stargate UAE, OpenAI is laying the groundwork not just for local deployment, but for global scalability. The proximity of Abu Dhabi to emerging AI markets in Africa, Central Asia, and South Asia may prove to be a strategic advantage, especially as demand for AI-driven tools — including large language models and image or video generators — continues to grow.
The announcement also adds pressure on other governments to consider similar partnerships. “OpenAI for Countries” is pitched as a new form of sovereign AI collaboration — combining local control, state-level deployment, and access to cutting-edge research, all backed by U.S. diplomatic and technological alignment.