As global oil demand shows signs of slowing, the United Arab Emirates is making a major push into artificial intelligence, aiming to diversify its economy beyond fossil fuels. A massive AI campus is currently rising in the Abu Dhabi desert, covering an area nearly a quarter the size of Paris. Once complete, it will host data centers powered by five gigawatts of electricity, marking the largest facility of its kind outside the United States.
The campus, led by Emirati tech giant G42, will serve a network spanning 3,200 kilometers and potentially reach up to four billion people. Phase one includes the one-gigawatt Stargate UAE cluster, operated by OpenAI with support from major tech players including Oracle, Cisco, and Nvidia. Microsoft recently announced plans to invest more than $15 billion in the UAE by 2029, building on last year’s $1.5 billion injection into G42.
The UAE’s commitment to AI is part of a long-term strategy that began in 2017 with the appointment of the world’s first AI minister and the launch of a national AI plan. G42, established in 2018 with backing from the Abu Dhabi sovereign wealth fund Mubadala, now employs over 23,000 people and develops a wide range of AI solutions.
The country has also focused on education and research, opening the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) in 2019, the world’s first AI-focused university. AI became a core subject in UAE schools last year, and local research centers have developed generative AI models such as Falcon, including an Arabic-language version.
Experts say the UAE benefits from its financial resources and abundant energy supply, enabling rapid construction of data centers and supporting cutting-edge technology development. Its status as a regional business hub and largely expatriate population also gives it an edge in attracting global AI talent.
Despite these advantages, experts caution that success is not guaranteed. “It’s a rapidly evolving field, and not all bets will pay off,” said Jean-Francois Gagne of the University of Montreal. Still, the UAE’s strategy underscores its determination to reduce reliance on oil and become a global player in AI.
