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The UAE is splitting up its $30bn AI data centre after Iran named it as a target

Posted on September 11, 2026September 11, 2026 By Emily Chen No Comments on The UAE is splitting up its $30bn AI data centre after Iran named it as a target

The UAE’s AI Data Centre Strategy Revamp

The United Arab Emirates (UAE) is revisiting its ambitious $30 billion Artificial Intelligence (AI) data centre project after Iran named it as a target.

Previously envisioned as a single massive campus covering 26 square kilometres outside Abu Dhabi, the plan is evolving into a network of smaller sites scattered across the country. This shift is driven by safety concerns, given the increasing tensions with Iran and the potential vulnerabilities of such a large, concentrated facility.

The revised strategy involves implementing robust military-grade protections for these data centres, including:

  • Underground facilities
  • Mountain-based servers
  • Advanced air defences to intercept drones and missiles
  • Blast-resistant construction
  • Redundant power and cooling systems

These measures are far beyond the norm for commercial data centres but reflect the heightened security concerns in the region.

Stargate UAE, led by G42 and supported by Nvidia, Cisco, and SoftBank, is a key component of OpenAI’s global AI infrastructure. The project, initially scheduled to reach 5 gigawatts, faces challenges beyond security.

Recent pauses in related projects, such as Stargate UK due to energy costs and regulations, highlight the broader hurdles facing the region’s AI ambitions. The initial allure of cheap energy and space has been tempered by geopolitical risks and shifting global market conditions.

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