OpenAI Plans Data Centers in UAE to Expand Middle East AI Infrastructure

OpenAI is reportedly considering establishing data centers in the United Arab Emirates (UAE) to significantly expand its footprint in the Middle East. According to Bloomberg, an official deal could be announced imminently, marking a strategic move to enhance regional AI infrastructure.

This initiative builds on OpenAI’s existing relationships in the region, notably its 2023 partnership with Abu Dhabi-based AI firm G42. G42 itself received a substantial $1.5 billion investment from Microsoft, a key backer of OpenAI, underscoring the interconnected ecosystem supporting AI growth in the UAE.

Further strengthening ties, MGX, an investment vehicle overseen by an Emirati royal family member, recently participated in an OpenAI funding round and plans to contribute to OpenAI’s Stargate AI infrastructure project. These collaborations highlight the UAE’s growing role as a hub for AI innovation and investment.

OpenAI’s strategy includes partnering with governments that maintain friendly relations with the United States, facilitating smoother cooperation and regulatory alignment. Earlier this month, OpenAI launched the OpenAI for Countries program, designed to build local AI infrastructure that better serves international customers and promotes the dissemination of democratic AI technologies.

The planned UAE data centers will enable OpenAI to provide faster, more reliable AI services across the Middle East, supporting regional businesses, governments, and developers. This expansion reflects a broader trend of global AI infrastructure localization, which is critical for compliance, latency reduction, and tailored service delivery.

As AI adoption accelerates worldwide, OpenAI’s move to establish physical infrastructure in strategic regions like the UAE demonstrates the importance of regional partnerships and investments in shaping the future of AI accessibility and governance.