During U.S. President Donald Trump's visit to the UAE in May, G42 announced plans to build a 5-gigawatt AI data center campus, part of a broader $200 billion deal between the U.S. and the Gulf state, raising concerns over security and economic control.

G42 is diversifying its AI chip supply for the campus by negotiating with AMD, Cerebras Systems, and Qualcomm, especially interested in Cerebras' wafer-scale chips for large-scale AI model training, with plans to cover 4 GW of the campus's capacity.

Despite geopolitical tensions, Nvidia’s CEO Jensen Huang confirmed ongoing chip supplies to Saudi Arabia’s HUMAIN project, which is also strengthening ties with Chinese firms like Lenovo, illustrating complex international tech relations.

This AI campus, set to be the largest outside the U.S., aims to serve nearly 2.9 billion people within 2,000 miles of the UAE, with an initial 1 GW phase called 'Stargate' scheduled for 2026, utilizing Nvidia's advanced Grace Blackwell GB300 systems.

The company is seeking to secure computing capacity from these US chipmakers to support the development of its AI infrastructure, highlighting a strategic move to reduce reliance on Nvidia alone.

The Stargate AI initiative, valued at around $500 billion, involves global AI infrastructure development with partners like SoftBank, Oracle, and OpenAI, reflecting a significant push for international AI growth.

The UAE-US AI campus is part of a strategic effort to enhance AI services within the region, with the initial phase expected to launch in 2026, and includes a 'digital embassy' model to securely host national data and counter threats.

The first Stargate data center outside the U.S. will be built in Abu Dhabi, with major partners like OpenAI, SoftBank, and Oracle, marking a significant milestone in global AI infrastructure expansion.

This regional competition includes Saudi Arabia's HUMAIN project, which is developing a 1.9-gigawatt AI data center by 2030, with Nvidia chips supplied for a UK data center and plans to expand to 6 gigawatts by 2034, intensifying the global AI infrastructure race.

The project’s initial 1 GW phase, called Stargate, will utilize Nvidia's systems and is designed to serve nearly 2.9 billion people, emphasizing the UAE's role as a regional AI hub.

The global AI sector is experiencing rapid growth, exemplified by Nvidia's 56% revenue increase in Q2 and projections of $54 billion in Q3, though some analysts warn of potential valuation bubbles.

Major tech firms including Google, AWS, Microsoft, Meta, and xAI are in negotiations with G42 to secure data center capacity, with Google being the furthest along, as part of the UAE's broader AI infrastructure ambitions.

Both the UAE and Saudi Arabia are positioning themselves as key AI hubs through strategic partnerships, investments, and leveraging US technology, while India is also emerging as a potential AI infrastructure center with plans for 4,500 MW of data center capacity by 2030.