When Donald Trump visited the United Arab Emirates earlier this year, he didn’t just bring diplomatic flair—he brought deals, ambition, and a bold signal of technological alliance. The centerpiece of his trip was the announcement of a massive joint US-UAE AI campus, billed as the largest AI infrastructure hub outside the United States.
This new campus marks the Gulf’s most ambitious move yet to position itself at the center of the global AI revolution. The visit also coincided with the White House easing export restrictions on advanced Nvidia microchips to both the UAE and Saudi Arabia. This shift shows how much the US now sees its Gulf allies as key partners in the global AI race.
The Gulf AI ambitions are clear: use sovereign wealth, energy resources, and geographic advantage to build a future beyond oil. Technology is central to this transformation. And at the heart of it all are data centers—massive facilities that power AI training and cloud computing.
Abu Dhabi is leading the charge with the “Stargate” project—a multibillion-dollar AI infrastructure initiative. It includes a major data center cluster designed to host OpenAI and other top US tech firms. The project is funded by G42, an Emirati state-linked tech company driving the UAE’s AI strategy.
Nvidia will supply its most advanced chips for the project. Tech giants like Cisco, Oracle, and Japan’s SoftBank are also involved in building the first phase.
Hassan Alnaqbi, CEO of Khazna—the UAE’s largest data center operator—compares the vision to Emirates Airlines’ rise. “Just like Emirates helped turn the UAE into a global hub for air travel, now the UAE can become an AI and data hub,” he said.
Khazna, majority-owned by G42, is building the physical infrastructure for Stargate. It already operates 29 data centers across the UAE.
The region’s leaders believe “compute is the new oil.” Mohammed Soliman, a senior fellow at the Middle East Institute, explains that compute—the processing power behind AI—could become the Gulf’s next major export.
Just as Gulf oil powered the 20th-century economy, regional AI firms now aim to supply the 21st-century digital economy.
This marks a strategic shift. Gulf sovereign funds once acted as passive investors in global tech. Now, they’re becoming active builders.
In Saudi Arabia, the Public Investment Fund (PIF) launched Humain, a national AI company. It plans to build “AI factories” powered by hundreds of thousands of Nvidia chips over the next five years.
In the UAE, Mubadala, a state-owned investment firm, backs G42 and MGX—a $100 billion AI-focused joint venture with Microsoft as a key technology provider.
Still, challenges remain. The region lacks a deep pool of world-class AI talent. To attract experts, the UAE offers low taxes, long-term “golden visas,” and lighter regulation.
Baghdad Gherras, founder of a UAE-based AI startup, says strong infrastructure will act as a magnet. “Building world-class digital and AI infrastructure will draw in companies and researchers,” he said.
However, the Gulf has yet to produce a globally recognized AI company like OpenAI or Mistral. Its small population—just over 10 million—limits the scale of its research ecosystem.
Therefore, the Gulf AI ambitions require more than just hardware. They demand a cultural and intellectual shift.
Meanwhile, the rise of the Gulf in AI has intensified the US-China tech rivalry. Trump’s visit gave Washington a strategic edge. In response, the UAE has scaled back some China-backed projects and reduced reliance on Huawei hardware.
Soliman argues the AI deals are “more about China than about the Gulf.” He says the US is trying to bring the Gulf into the “American AI stack”—the full pipeline of chips, infrastructure, models, and software dominated by US firms.
Gherras sees the UAE’s alignment with the US as pragmatic. “At this stage, Americans are ahead in the AI game. So, it made sense to bet on them,” he said.
Consequently, the Stargate deal is seen as a strategic win for the US. However, Reuters reported it still awaits US security clearance. Officials are concerned about potential Chinese personnel or technology in UAE data centers.
Nevertheless, the project is expected to move forward, backed by major US firms.
Still, Soliman warns not to underestimate China. “They’re scaling fast. Their AI stack may not be as powerful, but it’s cheaper. And for many countries, good enough is good enough.”
For now, both the US and the Gulf benefit. The US gains allies in its competition with China. The Gulf gains a powerful partner in its quest to replace oil with compute.
Moreover, the region’s geographic location between Asia and Europe gives it a natural advantage for data routing and connectivity.
Ultimately, the Gulf AI ambitions reflect a bold reimagining of the future—one where data, not oil, fuels prosperity.
As the world shifts from fossil fuels to digital infrastructure, the Gulf is betting that its next great resource won’t come from the ground—but from the cloud.
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