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

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 February 6, 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.
• Virtual data embassies will enable the creation of sovereign AI and cloud infrastructures in both countries, enhancing data security and technological independence.

France’s AI Infrastructure Push

• France has identified 35 potential sites for hosting AI data centers, offering fast-track administrative approvals to accelerate development.
• The UAE’s investment will leverage this framework, ensuring rapid deployment of the 1 GW data center.

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.

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 led by SoftBank and OpenAI.

Future Announcements

• Further details on initial investments will be unveiled at the Choose France Summit later in 2025.

Additional Insights from Reuters

• 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.
• 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.

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.