UAE Targets 5 Gigawatts of AI Compute Power by 2026, Solidifying 'AI Oil State' Ambition

Abu Dhabi, UAE – The United Arab Emirates is aggressively pursuing a strategy to become a global leader in artificial intelligence compute power, with ambitious plans to bring a massive 5 gigawatts of data center capacity online by 2026. This move aligns with the nation's vision to transform into an "AI oil state," a concept highlighted by Anton Leicht, Founder and CEO of Leicht & Co. and former Head of AI at Palantir Technologies. Leicht stated in a recent tweet, > "Among middle powers, the UAE has the clearest AI strategy: become an 'AI oil state' with meaningful global compute share."

This strategic push is central to the UAE's National AI Strategy 2031, aiming to diversify its economy beyond oil and contribute significantly to its non-oil GDP. The government projects AI to add approximately $91 billion (AED 335 billion) to the economy by 2031, underscoring a commitment to high-value markets and enhanced public sector performance. The nation views AI infrastructure as a foundational utility, akin to traditional energy grids, essential for national security and economic resilience.

At the forefront of this initiative is the multi-billion dollar Stargate UAE project, spearheaded by Emirati state-linked tech firm G42 in partnership with global giants like OpenAI, Nvidia, Oracle, and SoftBank. This hyperscale data center is designed to host up to 2.5 million GPUs, positioning the UAE as a critical node in the global AI infrastructure. Microsoft has also invested $1.5 billion in G42, further cementing international collaboration in the UAE's burgeoning AI ecosystem.

The UAE's focus on building sovereign AI capacity reflects a broader global trend towards digital sovereignty, with strict data localization laws compelling multinational companies to host sensitive data within national borders. This approach not only enhances national oversight but also incentivizes domestic infrastructure development, reducing latency and bolstering security. However, the rapid expansion of AI infrastructure in the UAE has also raised geopolitical considerations, particularly concerning its balancing act between U.S. and Chinese technological influence.

The sheer scale of the UAE's investment and its rapid development timeline signal a clear intent to secure a dominant position in the future of AI. By leveraging its abundant energy resources and rapid construction capabilities, the UAE aims to establish a significant and lasting global compute share. This bold strategy seeks to redefine the nation's economic identity and influence in the evolving technological landscape.