UAE and France Partner to Build a €50 Billion AI Data Center

The United Arab Emirates – UAE and France have solidified a strategic partnership to develop a 1 gigawatt (GW) AI data center, with investments ranging between €30-50 billion ($31-52 billion). This agreement, signed during UAE President Sheikh Mohamed bin Zayed Al Nahyan’s visit to France, underscores both nations’ commitment to advancing AI infrastructure and positioning Europe as a competitive player in the global AI race.

Article – Key Points

Investment and Framework Agreement

The UAE and France have agreed to invest €30-50 billion ($31-52 billion) in a 1 GW AI data center, marking one of the largest AI infrastructure projects globally.
The agreement was formalized during a meeting between UAE President Sheikh Mohamed bin Zayed Al Nahyan and French President Emmanuel Macron at the Élysée Palace in Paris on Thursday 6 February, 2025.
The joint Franco-Emirati statement emphasized the leaders’ commitment to exploring collaborations that support the AI value chain, including talent development and the acquisition of advanced technologies.
Further details on initial investments will be unveiled at the Choose France Summit later in 2025.

Strategic Partnership in AI

The partnership aims to develop the AI value chain, including investments in cutting-edge chips, data centers, talent development, and the establishment of virtual data embassies, leading to sovereign AI and cloud infrastructures in both countries.
The partnership also aims to establish virtual data embassies, which will facilitate the creation of sovereign AI and cloud infrastructures, ensuring data security and technological autonomy for both nations.

Key Players and Collaborations

The project is backed by a consortium of French and Emirati investors, including MGX, the UAE’s AI-focused investment firm.
MGX is also involved in Stargate, a $50 billion AI data center project in the US led by SoftBank and OpenAI.
Last November, EDF was in talks with data center operators to supply power to three 1GW developments.
EDF had previously launched Project Giga, a scheme designed to meet the growing energy demand from AI data centers by leveraging EDF’s land and grid connections to supply low-carbon power for hyperscalers.

France’s AI Infrastructure Push

A location for the AI campus has yet to be chosen, but it will be built somewhere in France. France’s digital and AI minister, Clara Chappaz, stated that the French government has identified 35 sites across the country suitable for data centers, which will be granted fast-track planning approval.
The UAE’s investment will leverage this framework, ensuring rapid deployment of the 1 GW data center.
Paris is one of Europe’s largest data center markets, and developments are springing up in other parts of France due to the country’s access to a plentiful supply of clean nuclear energy.

Energy and Sustainability

France’s energy mix, comprising 65% nuclear power and 25% renewable energy, provides a sustainable foundation for energy-intensive AI operations.
This aligns with global efforts to reduce carbon footprints and promote green AI technologies.

Global Context and AI Summit

The announcement precedes the Artificial Intelligence Action Summit in Paris (February 10-11, 2025), which will gather 100 countries to discuss AI’s potential and environmental impact.
The summit aims to position France and Europe as key players in AI, rivaling the U.S. and China.

Why This Matters

The UAE and France partnership represents a transformative step in global AI infrastructure development. By combining the UAE’s financial resources with France’s technological expertise and sustainable energy solutions, the project sets a new benchmark for ethical and efficient AI deployment. It also highlights the growing importance of international collaboration in addressing the challenges and opportunities of AI, positioning Europe as a leader in the global AI landscape.