UAE Commits €50B to Build Nuclear-Powered AI Data Center in France as Global Tech Race Escalates
In a move that underscores the intensifying global scramble for AI dominance, France and the United Arab Emirates have inked a landmark deal to construct one of the world’s most ambitious artificial intelligence data centers. The €30–50 billion ($31–52B) project, announced days before the AI Action Summit here, positions France as a magnet for energy-hungry tech infrastructure—and the UAE as a heavyweight in geopolitical tech investing.
The agreement, finalized by French President Emmanuel Macron and UAE leader Mohamed bin Zayed Al Nahyan, centers on a sprawling AI campus anchored by a 1-gigawatt data hub. For context, that’s enough energy to power roughly 750,000 homes—a scale reflecting AI’s voracious appetite for computing resources.
France’s pitch? Nuclear power. With 65% of its electricity sourced from atomic plants and another 25% from renewables, the country is marketing itself as a “low-carbon AI” hub. Digital Minister Clara Chappaz told reporters Thursday that 35 sites have been fast-tracked for data center development, with the UAE project likely to lead the charge.
“This isn’t just about silicon and servers,” Chappaz said at a Balderton-Photoroom event. “It’s Europe’s chance to reclaim relevance in a sector dominated by U.S. and Chinese giants.”
The UAE’s sovereign tech fund, MGX—a key player in SoftBank and OpenAI’s $100B “Stargate” supercomputer initiative—will spearhead financing. Notably, MGX’s dual bets on Stargate and the French project signal Abu Dhabi’s strategy to become the OPEC of AI infrastructure.
As global leaders including U.S. VP J.D. Vance and Germany’s Olaf Scholz descend on Paris for next week’s summit, expect more deals framing AI’s future through an environmental lens. France’s nuclear edge, paired with Gulf capital, could rewrite the rules of sustainable computing—if the blueprint holds.
Why is France positioning itself as an AI data center hub?
France leverages its 65% nuclear-powered grid to attract tech firms seeking low-carbon energy for energy-intensive AI operations.
What role does the UAE’s MGX play in global AI?
MGX, Abu Dhabi’s AI investment arm, is financing mega-projects like France’s data center and OpenAI’s Stargate, aiming to position the UAE as a critical infrastructure player.
How does nuclear power benefit AI development?
Nuclear energy provides stable, large-scale electricity with minimal carbon emissions—key for powering energy-guzzling AI data centers sustainably.
What’s the significance of the AI Action Summit in Paris?
The summit convenes global leaders to shape AI policy and investments, with a focus on balancing technological growth with environmental responsibility.
How does this partnership impact Europe’s AI competitiveness?
By combining Gulf funding with French energy infrastructure, the deal aims to reduce Europe’s reliance on U.S. and Chinese tech giants in the AI race.
