Overview

• The United States and United Arab Emirates have finalized plans to construct a 5GW AI data center campus in Abu Dhabi, with the first 1GW phase already in progress.
• The project, powered by nuclear, solar, and gas energy, highlights the Gulf's abundant, low-cost energy as a critical enabler of AI infrastructure at scale.
• The Trump administration reversed prior export controls on AI chips to Gulf states, incorporating strict security measures to prevent technology diversion to China or Russia.
• The deal includes a matching investment clause, requiring the UAE to fund equivalent AI infrastructure development in the United States.
• Congressional Democrats have raised concerns over national security and supply chain risks, while proponents argue the partnership counters China's influence and strengthens US AI leadership.