Abu Dhabi, May 16, 2025 — In a groundbreaking bilateral agreement, US President Donald Trump and UAE President Sheikh Mohamed bin Zayed Al Nahyan have signed a strategic partnership to build a massive 5-gigawatt AI data center complex in Abu Dhabi, solidifying ties between Washington and the Gulf region amid a global race for artificial intelligence dominance. (Source: CNN)
The deal, announced on Thursday during Trump’s official state visit to the United Arab Emirates, includes a phased deployment beginning with a 1-gigawatt data center — which will ultimately scale up to cover over 10 square miles. According to the US Commerce Department, this marks the largest American-backed data center deployment outside of the United States.
A Strategic Tech Alliance
Commerce Secretary Howard Lutnick described the project as a “major milestone” in President Trump’s push to extend American tech leadership globally: “By extending the world’s leading American tech stack to an important strategic partner in the region, this agreement is a major milestone in achieving President Trump’s vision for US AI dominance.”
While no companies were officially named in the deal, Nvidia CEO Jensen Huang was reportedly present during Trump’s meetings with Emirati officials. Nvidia declined to comment, but industry analysts believe the company may play a crucial role in powering the center’s AI hardware capabilities.
Positioning the UAE as a Post-Oil AI Powerhouse
The UAE has made bold moves to establish itself as a global AI leader by 2031. You can explore their full National Artificial Intelligence Strategy online. This mega data center reinforces those ambitions by supporting AI startups, cloud services, and sovereign AI research initiatives across the Global South.
Reciprocal Commitments
The agreement also includes a reciprocal clause: the UAE has pledged to finance or build AI data centers within the United States that are “at least as large and as powerful” as those planned in Abu Dhabi. This transcontinental partnership will strengthen the digital backbone linking US and Middle Eastern AI ecosystems.
Global AI Chessboard: US vs China
Trump’s administration has prioritized AI and semiconductor dominance amid ongoing competition with China. The expansion into Abu Dhabi is seen as a strategic counterbalance to Beijing’s growing influence in Africa, Asia, and the tech sector. With recent tensions over rare earth exports, US AI infrastructure in allied nations like the UAE helps insulate American tech interests from global supply chain shocks.
Outlook
As the AI race accelerates, this US-UAE partnership underscores the importance of geopolitical alignment in the tech domain. The 5-gigawatt data center could be the cornerstone of the Middle East’s digital future and a vital node in America’s global AI supply chain.
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