The UAE and France have signed an agreement to establish a large-scale artificial intelligence (AI) data center. French President Emmanuel Macron and UAE President Mohamed bin Zayed Al Nahyan finalized the deal, marking a major step in AI collaboration between the two nations. The investment, ranging between €30 billion and €50 billion ($31 billion to $52 billion), will support the development of an AI campus, with a 1GW-capacity data center at its core.
Strengthening AI Data Center Infrastructure
The agreement comes just days before the Artificial Intelligence Action Summit in Paris, where global leaders will discuss AI’s future. French Digital and AI Minister Clara Chappaz announced that France has identified 35 pre-approved locations for data centers. The UAE’s investment will benefit from fast-track approvals, allowing for a swift and efficient setup.
This initiative aligns with France’s clean energy strategy, as the country generates 65 percent of its electricity from nuclear power and 25 percent from renewables. The availability of low-carbon energy makes France an ideal location for power-intensive AI operations.
MGX and Global AI Expansion
The project will receive backing from a consortium of French and Emirati investors, including MGX, an Emirati investment firm specializing in AI. MGX has also invested in Stargate, an AI project led by SoftBank and OpenAI.
At a tech event in Paris, Minister Chappaz noted that AI breakthroughs, such as those from Chinese startup DeepSeek, highlight the rapid pace of AI innovation. She emphasized that Europe must seize the opportunity to remain competitive in the global AI landscape.
High-Level Global Participation
The AI Action Summit will bring together world leaders and industry executives to discuss AI’s future. Key attendees include:
- U.S. Vice President J.D. Vance
- China’s Vice Premier Zhang Guoqing
- European Commission President Ursula von der Leyen
- German Chancellor Olaf Scholz
Additional investment announcements and a joint statement on AI’s environmental impact are expected at the summit. This UAE-France partnership signals strong global cooperation in AI development and sustainable technology.
