The US and UAE AI partnership marks a major global milestone as both nations agree to develop the world’s largest AI campus in Abu Dhabi. The project, valued at billions, was announced during President Donald Trump’s diplomatic visit to the UAE. The initiative, is part of a larger $200 billion collaboration package.
Strategic Tech Alignment Anchored in AI
According to the New York Times, the United States and the United Arab Emirates finalized a landmark deal to build a top-tier artificial intelligence campus in Abu Dhabi. UAE-based tech firm G42 will lead the project, constructing a 10-square-mile campus powered by a 5-gigawatt energy infrastructure. The advanced complex will feature cutting-edge AI technologies and consume enough electricity to power an entire large city efficiently and sustainably.
Set to become the largest AI data complex outside the United States, the project signifies a strategic partnership to accelerate global AI innovation. According to the press release by the U.S. Department of Commerce, the facility will serve as a worldwide hub for AI development, including chip design, data processing, research, and training. The press release reads,
A new, comprehensive 5GW UAE-US AI Campus in Abu Dhabi was unveiled today at Qasr Al Watan in the presence of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates, and President Donald J. Trump, 47th President of the United States. The new AI campus, the largest outside of the US, will be home to US hyperscalers and large enterprises that can leverage the capacity for regional compute with the ability to serve the Global South.
A key part of the deal includes the UAE’s pledge to buy 500,000 high-performance Nvidia AI chips annually from 2025. These powerful processors, once restricted over U.S. concerns about Chinese access, will now transfer legally under a new technology framework. The updated framework emphasizes national security and regulatory coordination, aligning export policies between the United States and the United Arab Emirates.
Economic Diplomacy and Broader Trade Pacts
The UAE plans significant AI and data infrastructure investments in the U.S., potentially exceeding its Abu Dhabi campus in scale. Trump, meeting President Sheikh Mohamed bin Zayed, announced $200 billion in deals, including Etihad’s $14.5 billion Boeing aircraft purchase. The UAE committed $1.4 trillion in U.S. investments over ten years, targeting semiconductors, AI, energy, and clean manufacturing industries.
The US-UAE AI partnership is also expected to increase the global presence of American AI and cloud service companies. The Abu Dhabi data centre, which serves regions within a 2,000-mile radius, will allow these companies to more effectively target markets in the Global South.
Deal Reflects Geopolitical Realignment on AI with China
Despite the UAE’s ambitious AI push, Washington stays cautious and questions the long-term reliability of its authoritarian-led regional partners. Critics argue that Gulf nations possess capital and energy but lack transparency, raising concerns due to their close ties with China. AI plays a strategic role in economic and military sectors, prompting U.S. fears about unauthorised access to sensitive American technologies.
Officials worry that, without strict safeguards, China could indirectly benefit from U.S. AI breakthroughs shared through Gulf-based collaborations and ventures. President Biden restricted AI chip exports to the Gulf due to concerns about technology leakage and China’s potential indirect access.
The Trump administration later eased restrictions after G42 decided to sever ties with Chinese tech firms, enabling a revised framework. This US and UAE AI partnership not only advances AI research but also reshapes tech diplomacy amid rising tensions with China. The policy shift and the UAE’s alignment of digital rules with U.S. standards significantly strengthened Gulf-American cooperation in advanced AI development.
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