UAE Restructures Massive AI Data Center Campus Following Iranian Attacks
The UAE is decentralizing a massive 5-gigawatt AI data center project and moving facilities underground following Iranian drone attacks, according to Reuters reports.
The United Arab Emirates is quietly restructuring plans for a massive 5-gigawatt artificial intelligence data center campus—one of the largest outside the USA—following Iranian attacks that forced a strategic reassessment of critical infrastructure placement, according to Reuters.
Initially envisioned as a single 26-square-kilometer mega-campus in Abu Dhabi, the project is now shifting toward a decentralized network of data centers distributed across the UAE. Authorities are evaluating enhanced defenses against drone and missile strikes, including dedicated air defense integration and underground construction methods.
Strategic AI Partnership and US Ties
The AI infrastructure initiative was formalized during U.S. President Donald Trump's visit to the Gulf nation. Led by G42, an AI firm controlled by UAE National Security Adviser Sheikh Tahnoun bin Zayed Al Nahyan, the project represents a cornerstone of Abu Dhabi's strategy to diversify its economy beyond oil.
Under bilateral agreements granting access to advanced Nvidia AI chips and U.S. technologies, the UAE severed technological ties with China and committed investments to the American Stargate initiative—a joint venture between Oracle, OpenAI, and SoftBank.
Construction and Regional Security
Reuters noted that the timeline and final cost impacts of the architectural redesign remain unfinalized. Construction on the first 1-gigawatt phase, valued at $30 billion and dubbed Stargate UAE, commenced last year, with the initial 200 megawatts slated to come online this year.
"Upon completion, it will connect every government agency and commercial institution in the UAE to the world's most advanced AI models," stated Larry Ellison, Oracle's Chief Technology Officer.
Security concerns intensified after Amazon announced in March that Iranian drone strikes inflicted structural damage, power outages, and secondary water damage from fire suppression systems at three of its data center facilities in the UAE and Bahrain.
