UAE Plans 40 Billion Euro Investment in Germany's Digital Infrastructure
The UAE plans a 40 billion euro investment in Germany focusing on AI and data centers, strengthening economic and technological ties between the two nations.
The United Arab Emirates plans to invest 40 billion euros (approximately $46.4 billion) in Germany as part of deepening economic ties between the two countries, with data center infrastructure forming a central part of the investment. The investment was announced this week during a visit to Germany by UAE President Sheikh Mohamed bin Zayed Al Nahyan, who met with Chancellor Friedrich Merz. The funds will span artificial intelligence, digital infrastructure, and energy.
Strategic Investments and Data Centers
The package will include approximately 1 gigawatt of new data center capacity, with reports indicating that 10 billion euros are earmarked for investment in the state of Bavaria, a leading industrial and technological hub in Germany. Both nations also signed a declaration of intent to establish a joint investment council aimed at promoting investments and strengthening ties between the public and private sectors.
"Abu Dhabi is also exploring targeted investments in supply chains and specific corporations, utilizing this for strategic purposes—including the development of new alliances and influence in Europe," said Paul Musgrave, an associate professor of political science at Georgetown University in Qatar.
Economic Diversification and Trade
For Germany, this serves as a significant boost during an economic slowdown, providing Chancellor Merz with a major win. The UAE is a key trading partner for Germany in the Gulf region, with non-oil bilateral trade reaching $15.5 billion in 2025. The UAE has already invested about 34 billion euros in Germany, focusing on sectors such as chemicals and renewable energy.
