Stargate UAE: A Game-Changing AI Infrastructure Investment

Stargate UAE is a monumental artificial intelligence infrastructure project announced in May 2025 as a partnership between the United Arab Emirates and global technology leaders. It represents the most significant international expansion of OpenAI's Stargate initiative and marks a historic strategic alignment between the UAE and the United States in the global AI race.​

What Is Stargate UAE?

Stargate UAE is a 1-gigawatt AI computing cluster being developed by Khazna Data Centers (a G42 subsidiary) in partnership with OpenAI, Oracle, NVIDIA, Cisco, and SoftBank Group. The facility is located on a 10-square-mile site in Abu Dhabi and will eventually become part of a larger 5-gigawatt UAE-U.S. AI Campus, making it the largest AI infrastructure deployment outside the United States.​

The project features cutting-edge NVIDIA Grace Blackwell GB300 systems—the most advanced AI servers currently available. The first phase will deploy 200 megawatts of capacity and is scheduled to come online in 2026, with the full 1-gigawatt facility expected to be operational shortly thereafter.​

To put this in perspective, 1 gigawatt of continuous power is sufficient to operate approximately 1 million high-performance NVIDIA GPUs, equivalent to the electricity consumption of roughly 700,000 homes. The project currently employs around 3,500 people and has already received long-lead equipment and mechanical systems deliveries.​

Investment Scale and Partnership Structure

The Stargate UAE initiative represents an estimated $20 billion investment through UAE-based AI investment vehicle G42, with expected outlays of $8-10 billion each in the Gulf and United States. This dual-investment approach is strategic: for every dollar the UAE invests in Stargate UAE, it commits an additional dollar to U.S. AI infrastructure, aligning the nation's interests with American technological leadership.​

The project was brokered during U.S. President Donald Trump's visit to the UAE and involves close coordination with the U.S. government. The partnership represents a unprecedented commitment to shared AI infrastructure development between a Middle Eastern nation and the United States.​

Impact on the UAE Economy and Jobs

The economic implications of Stargate UAE are transformative across multiple dimensions:

Job Creation and Workforce Development

The project is already creating ripple effects across the region's employment landscape. Current salary ranges for mid-level AI roles in the UAE span approximately AED 250,000 to AED 400,000 annually, with industry experts predicting these will become starting points given talent scarcity. Key employment opportunities are emerging in data engineering, AI software development, machine learning engineering, cybersecurity, and data science roles.​

The Middle East data center market is projected to grow from $5.6 billion in 2023 to $9.6 billion by 2029, with Stargate UAE serving as a primary growth driver. Abu Dhabi's digital transformation strategy alone is expected to contribute more than AED 24 billion to Abu Dhabi's economy by 2027 while creating more than 5,000 jobs and supporting Emiratisation efforts.​

Economic Diversification Beyond Oil

Stargate UAE is integral to the UAE's long-term goal of diversifying its economy beyond traditional oil and gas dependence. The facility will drive economic value through multiple revenue streams, including AI-as-a-service offerings to governments, enterprises, and global research institutions. Analysts estimate the full 5-gigawatt deployment could generate over $20 billion in annual revenue.​

The project positions the UAE as a global AI superpower, attracting international businesses, researchers, and innovators. This reinforces the nation's transition toward a knowledge-driven economy capable of thriving in future global markets.​

Government Digitalization and AI-Native Services

One of the most ambitious applications of Stargate UAE infrastructure is Abu Dhabi's commitment to become the world's first AI-native government by 2027. The emirate is investing AED 13 billion ($3.5 billion) to automate 100 percent of government processes and enable all services to move to the cloud within three years.​

This transformation includes six core areas: AI-powered legislation and policy, intelligent service delivery (24/7 AI assistants for all government services), predictive risk management, smart city integration, digital identity and authentication, and a centralized data intelligence platform.​

The expected benefits are substantial: the UAE plans to automate 90% of its government services by 2027, generating projected annual savings of $3.5 billion. Abu Dhabi has already demonstrated this capability through TAMM 3.0, its one-stop government services app, which has reduced offline customer visits by 90% and made 73% of transactions instantaneous.​

Over 200 AI-driven solutions will be deployed to improve public service delivery, boost operational productivity, and contribute to environmental sustainability, with over 300 AI use cases identified across 50+ government entities.​

Broader Strategic Implications

Regional and Global Reach

Stargate UAE has the capacity to provide AI infrastructure and computing resources within a 2,000-mile radius of Abu Dhabi, potentially reaching half the world's population. This geographic advantage positions the UAE as a critical hub for AI services across Europe, Asia, Africa, and the Middle East.​

Digital Sovereignty and Security

The project enables the UAE to achieve true digital sovereignty—the ability to control its AI destiny, from data security to model training. This is critical for governments and enterprises seeking to keep sensitive data within national borders while maintaining access to cutting-edge AI capabilities.​

First Country to Offer National ChatGPT Access

Under the partnership, the UAE will become the first country in the world to enable ChatGPT nationwide, providing all citizens and residents with access to advanced AI tools through government and commercial channels.​

Energy and Infrastructure Challenges

The project does present significant challenges. Stargate UAE's full 5-gigawatt campus will require energy equivalent to powering over 3.5 million homes, creating continuous, 24/7 power demands. To address this, the facility will be powered by a mix of nuclear, solar, and natural gas sources to minimize carbon emissions while ensuring operational resilience.​

However, UAE officials estimate that 20 to 30 percent of electricity is lost in transmission and distribution due to outdated infrastructure, highlighting the need for broader grid modernization to support hyperscale data center operations.​

Timeline and Future Outlook

The first 200 megawatts are on track for 2026 delivery, with construction progressing steadily as of October 2025. The full 1-gigawatt facility will follow shortly thereafter, with the broader 5-gigawatt campus scaling over the coming years.​

This project positions the UAE as a pivotal player in the global AI infrastructure race, establishing it not just as a regional hub but as a strategically significant partner in the emerging AI-driven global economy. By combining world-class infrastructure, government commitment to digital transformation, and strategic alignment with leading U.S. technology firms, Stargate UAE is reshaping the UAE's technological future and its role in shaping global artificial intelligence development.