OpenAI is reportedly planning to build data centers in the United Arab Emirates (UAE), aiming to boost its footprint across the Middle East. According to Bloomberg, this major development could be officially announced as early as this week.

Strong Ties with UAE and Support from Microsoft

OpenAI already has deep ties with the UAE. In 2023, it partnered with Abu Dhabi-based AI firm G42, which later received a massive $1.5 billion investment from Microsoft, a major OpenAI backer. Adding to this, an investment group called MGX, managed by a member of the UAE royal family, recently took part in an OpenAI funding round and is expected to support OpenAI’s ambitious Stargate AI infrastructure project.

New Program Aims to Spread Democratic AI

This new move is part of OpenAI’s wider strategy to work more closely with governments that are aligned with U.S. interests. Just earlier this month, the company launched a program titled OpenAI for Countries. This initiative aims to help OpenAI build local infrastructure worldwide, better serve global AI customers, and spread democratic AI.

Such competitive conditions supplemented with cheaper energy and a strong government initiative have positioned the UAE as a global hub for AI and emerging technologies. OpenAI’s possible data center in the UAE would mirror this growing global demand for AI services and the ever-increasing importance of the country in the world of tech innovation. Not only does this strategic expansion constitute a landmark development for OpenAI, but it also means the technology partnership between the U.S. and the UAE has assumed a giant stride forward, thus bringing the future of AI closer, faster, and more globally connected.