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Home Middle East Innovation Frontier

UAE to Invest Billions in AI Data Center Project in France

by Faith Amonimo
February 7, 2025
in Middle East Innovation Frontier
Reading Time: 3 mins read
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The United Arab Emirates (UAE) and France have signed a landmark agreement to develop a large-scale artificial intelligence (AI) data center in France. This initiative, announced just days before the Artificial Intelligence Action Summit in Paris, is expected to attract major investments and strengthen France’s AI infrastructure.

The deal was formalized between French President, Emmanuel Macron and UAE President, Mohamed bin Zayed Al Nahyan, signaling a significant step toward global AI collaboration.

Massive AI Campus Planned in France

According to a report from AFP, both nations plan to invest between €30 billion and €50 billion ($31-52 billion) to create an AI-focused campus, with a key portion of the investment funding a 1GW-capacity AI data center.

  • The French government has already identified 35 potential locations for new data centers, ensuring fast-track approvals.
  • The UAE’s investment will benefit from this streamlined process, accelerating development.

France’s Push for AI and Sustainability

France’s energy mix makes it an attractive location for AI infrastructure development:

  • 65% of the country’s electricity comes from nuclear energy, ensuring stable, low-carbon power.
  • 25% of electricity is generated from renewable sources, making France a strategic choice for eco-friendly AI data centers.

As tech companies seek to lower their carbon footprint, France is using the AI Action Summit to attract foreign investments in sustainable AI infrastructure.

Consortium of Investors to Back AI Expansion

A joint French-Emirati consortium will finance the AI data center project, with MGX, a UAE-based artificial intelligence investment firm, playing a key role.

  • MGX is already involved in Stargate, a large-scale AI initiative led by SoftBank and OpenAI.
  • Commenting on Stargate and China’s DeepSeek AI advancements, France’s digital and AI minister, Clara Chappaz, expressed optimism about Europe’s AI prospects.

Upcoming AI Action Summit in Paris

On Monday and Tuesday, top global leaders and tech executives will gather in Paris for the AI Action Summit.

  • Attendees will likely announce more AI investment deals.
  • A joint diplomatic statement could be issued, focusing on the environmental impact of AI development.

Expected attendees include:

  • U.S. Vice President, J.D. Vance
  • China’s Vice Premier, Zhang Guoqing
  • European Commission President, Ursula von der Leyen
  • Germany’s Chancellor, Olaf Scholz

Moving Ahead

The UAE’s multibillion-dollar investment in France’s AI infrastructure marks a significant milestone in global AI collaboration. With France’s commitment to clean energy and the UAE’s aggressive AI expansion, this partnership could position France as a leading AI hub in Europe.

As the AI Action Summit unfolds, the world will be watching for further developments, new investments, and strategic alliances that shape the future of artificial intelligence.

Tags: AI data center fundingAI infrastructure investmentArtificial Intelligence Action SummitFrance AI campus projectMGX AI investmentsSustainable AI developmentUAE France AI partnership
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