OpenAI Expands AI Infrastructure to Abu Dhabi with Massive 1 Gigawatt Datacenter Partnership

OpenAI has announced plans to install the second iteration of its Stargate project in a massive datacenter in Abu Dhabi, in the United Arab Emirates (UAE). The facility, which measures around 10 square miles, is part of the UAE's broader strategy to become a regional AI powerhouse, leveraging its significant financial resources derived from oil wealth. The Abu Dhabi datacenter, officially known as the UAE-US AI Campus, is expected to draw nearly half of the world’s population living within 2,000 miles, ensuring low latency for AI applications and services. The UAE-US AI Campus will be powered by a mix of nuclear, solar, and gas energy sources, providing the necessary power and cooling for the extensive computational demands of AI models. Group 42 Holding, an AI investment firm established by the UAE, is spearheading the project and will operate it in partnership with various U.S. companies. While specifics on all partners are not yet public, Oracle and Microsoft, both of which have existing ties with G42, are likely candidates. The partnership includes diversion guarantees to comply with U.S. export controls, ensuring that sensitive technologies are not misused or distributed to restricted countries. OpenAI has committed to using 1 gigawatt of the 5-gigawatt capacity at the Abu Dhabi facility. Initially, 200 megawatts of this capacity will be dedicated to Nvidia's "Blackwell" GB300 systems, configured in NVL72 racks. Each GB300 rack consumes between 120 and 140 kilowatts, and with 200 megawatts, OpenAI could potentially deploy close to 100,000 Nvidia Blackwell B300 GPUs. These GPUs, if fully utilized at 200 megawatts, could deliver around 2 zettaflops of AI performance at FP4 precision. Scaling this up to 1 gigawatt would allow for roughly 7,000 racks, costing around $30 billion and delivering approximately 10 zettaflops. The decision to establish a major presence in Abu Dhabi reflects OpenAI's strategy to diversify its operational risks and harness the region's financial muscle and strategic location. Currently, OpenAI relies heavily on Microsoft Azure and CoreWeave for its processing needs, but it is also building its own 1.2-gigawatt Stargate facility in Abilene, Texas, with the assistance of Crusoe Energy. This facility, projected to cost $15 billion, will house eight datacenters, each equipped with 50,000 Blackwell B200 GPUs, totaling 400,000 GPUs. Crusoe Energy recently secured $11.6 billion in financing to advance the project, with two datacenters (200 megawatts) expected to be operational by June. The UAE stands to gain multiple benefits from these partnerships. Financially, the country will earn revenue from datacenter rents, power, and cooling. Moreover, it is likely that UAE researchers, particularly those affiliated with G42, will have access to OpenAI models and infrastructure. The sheer scale of the facility also provides a strategic asset for the UAE, potentially worth over $100 billion in AI accelerators alone, with total infrastructure costs doubling that figure. Given the geopolitical climate, having such a valuable resource within its borders offers a layer of security and influence. Industry insiders view this move as a significant step towards democratizing AI capabilities globally. The UAE-US AI Campus could serve as a hub for AI research and development, attracting talent and fostering innovation. For U.S. tech companies, the collaboration presents a lucrative opportunity, given the high rental potential of the facility. Over four years, the investments could yield returns in the range of $400 billion to $700 billion, making it a highly attractive market for cloud service providers looking to expand their footprint and profitability. In summary, OpenAI's expansion into Abu Dhabi underscores the growing importance of global collaboration in the AI sector. The facility, with its substantial capacity and strategic location, is poised to play a pivotal role in advancing AI technologies and services worldwide. The partnership also highlights the UAE's commitment to transforming its economic model, moving from a reliance on oil to a more diversified, tech-driven economy.