A plan to build a campus and data centre for artificial intelligence in the UAE marks one of the world's largest computing infrastructure projects.
Abu Dhabi AI company G42 has teamed up with technology giants OpenAI, Oracle and Nvidia, alongside SoftBank Group, to create Stargate UAE.
It will be the largest AI data centre, forming part of a system of OpenAI-linked data centres around the world and marking a further vote of confidence in the UAE's capabilities to host large-scale tech critical to today's economic, societal and business needs.
OpenAI chief executive Sam Altman said in a post on X: "Great to work with the UAE on our first international Stargate! Appreciate the governments working together to make this happen. Sheikh Tahnoon has been a great supporter of OpenAI, a true believer in AGI, and a dear personal friend."
Here, we try to quantify what the big numbers mean and how Stargate UAE compares to its peers.
What is data centre capacity?
Data centre capacity is the total physical space and power needed to handle the storage and processing of data, typically measured in kilowatts or megawatts.
Data centres are grouped into three sizes: small, measuring up to about 1,000 square feet (93 square metres), medium, around 10,000 sqft to 50,000 sqft, and large, which are more than 50,000 sqft, according to Data Centre World.
At the launch of Stargate UAE were President Sheikh Mohamed; Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi; Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence; Sheikh Tahnoon bin Zayed, Deputy Ruler of Abu Dhabi and National Security Adviser; Khaldoon Al Mubarak, chairman of the UAE’s Executive Affairs Authority; Peng Xiao, G42 chief executive; Jensen Huang, chief executive of Nvidia; Sam Altman, chief executive of OpenAI; SoftBank Group founder Masayoshi Son; Jeetu Patel, Cisco's president and chief product officer; Mike Sicilia, Oracle executive vice president; and Marty Edelman, group general counsel of G42. Photo: G42
In general, the bigger the data centre, the bigger its capacity. On a monthly basis, they are estimated to consume as much as 36,000kWh, 2,000MW and 10MW, respectively, it added.
The capacity of data centres is not exclusive to the power needed to handle data – it also includes other resources needed to run the facility, including cooling systems, its size, the types of servers used and, most importantly, how many graphics processing units, or GPUs, are in it. Increasingly, more sustainable and eco-friendly systems are being used by the industry to make them more efficient.
What can 1MW and 1GW do?
A single MW can support 1,000 Nvidia Blackwell GPUs for training or, in inference mode, tens of millions of daily ChatGPT‑style queries.
"Think of 1MW as the backbone for a mid‑sized national‑language model serving an entire country," Mohammed Soliman, director of the strategic technologies and cybersecurity programme at the Washington-based Middle East Institute think tank, told The National.
Meanwhile, 1GW of continuous power is enough to run roughly one million top‑end Nvidia GPUs once cooling and power‑conversion overheads are factored in.
In other words, that is roughly the annual electricity used by a city the size of San Francisco or Washington.
How much do data centres cost to build?
Depending on the size, anywhere from millions to billions of dollars.
The components needed to be taken into consideration are land and construction costs; equipment, most importantly how many servers will be hosted; infrastructure, including cooling systems and power (should be lower if green energy options are used); security measures, both physically and digitally; and manpower.
Also, data centre builders need to consider potential increases in operating costs as time goes on and the location where the data centre will be built. The most expensive markets for data centre construction are Tokyo, Singapore and Zurich, according to a study by UK professional services firm Turner & Townsend.
China Telecom Data Centre, the world's biggest before the unveiling of Stargate UAE, has a capacity of "only" 150MW and was built at a cost of $3 billion. Investments into 1GW Stargate UAE – built in co-operation with Cisco and Japan's SoftBank Group and part of a planned larger 5GW campus – will reportedly be in the $20 billion range, according to OpenAI.
How does Stargate UAE stack against other big data centres?
It actually blows everyone else out of the water – as shown by the aforementioned size of China Telecom Data Centre.
Stargate UAE even outsizes the data centres of Google and Microsoft, both in terms of size and cost: they have a capacity of 100MW and 50MW, respectively, and cost a reported $5.5 billion and $3 billion, according to data compiled by California-based technology services firm Brightlio.
Even Apple's data centre in Arizona only has a capacity of 50MW and cost $2 billion.
Once the 5GW campus is complete, it could host about 2.5 million GPUs while gulping as much power as several mid‑sized US cities combined, Mr Soliman added.
The UAE has at least 17 data centres, according to data compiled by industry tracker DataCentres.com, and has plans to boost this figure.
Abu Dhabi's Khazna Data Centres, one of the industry's largest operators in the Middle East, has a capacity of nearly 450MW and has plans to build a 100MW campus in Ajman, which would be its largest in the UAE. Its chief executive, Hassan Al Naqbi, had told The National that it expects UAE data centre capacity will leap to 850MW by 2029.
Last month, a hyperscaler data centre worth Dh2 billion ($545 million) to be built in Dubai was announced by telecom provider du and Microsoft. Even Awqaf Abu Dhabi, or the Endowment and Minors’ Fund Authority, is also open to investing in data centres as part of its push into defensive sectors to help shield its assets from economic shocks, its director general recently told The National.
That's aside from enormous investments poured in by Microsoft, Oracle, Google, Alibaba and other big-name players into the UAE's data centre market.
"The UAE lies at the crossroads of three high‑growth regions: South Asia, East Africa and the Middle East. It sits comfortably within the latency envelope that hyperscalers target," Mr Soliman said.
In addition, the Stargate UAE campus "should provide the steady demand that makes new clean‑energy projects bankable", he added.
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
This is how many recognised sects Lebanon is home to, along with about four million citizens
450,000
More than this many Palestinian refugees are registered with UNRWA in Lebanon, with about 45 per cent of them living in the country’s 12 refugee camps
1.5 million
There are just under 1 million Syrian refugees registered with the UN, although the government puts the figure upwards of 1.5m
73
The percentage of stateless people in Lebanon, who are not of Palestinian origin, born to a Lebanese mother, according to a 2012-2013 study by human rights organisation Frontiers Ruwad Association
18,000
The number of marriages recorded between Lebanese women and foreigners between the years 1995 and 2008, according to a 2009 study backed by the UN Development Programme
77,400
The number of people believed to be affected by the current nationality law, according to the 2009 UN study
4,926
This is how many Lebanese-Palestinian households there were in Lebanon in 2016, according to a census by the Lebanese-Palestinian dialogue committee
Porsche Macan T: The Specs
Engine: 2.0-litre 4-cyl turbo
Power: 265hp from 5,000-6,500rpm
Torque: 400Nm from 1,800-4,500rpm
Transmission: 7-speed dual-clutch auto
Speed: 0-100kph in 6.2sec
Top speed: 232kph
Fuel consumption: 10.7L/100km
On sale: May or June
Price: From Dh259,900
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 201hp at 5,200rpm
Torque: 320Nm at 1,750-4,000rpm
Transmission: 6-speed auto
Fuel consumption: 8.7L/100km
Price: Dh133,900
On sale: now
THE BIO:
Favourite holiday destination: Thailand. I go every year and I’m obsessed with the fitness camps there.
Favourite book: Born to Run by Christopher McDougall. It’s an amazing story about barefoot running.
Favourite film: A League of their Own. I used to love watching it in my granny’s house when I was seven.
Personal motto: Believe it and you can achieve it.
