OpenAI is considering establishing data centers in the United Arab Emirates, signaling a major step in its push to expand infrastructure beyond the U.S. and Europe. A formal announcement could come within days, according to sources cited by Bloomberg.
The move would mark a deepening of OpenAI’s existing ties with the UAE, particularly through its ongoing partnership with Abu Dhabi-based artificial intelligence firm G42. That collaboration began in 2023 and was reinforced last year when Microsoft—OpenAI’s largest backer—invested $1.5 billion into G42, giving the Emirati company access to Microsoft’s Azure cloud platform and related AI tools.
OpenAI’s potential UAE data center initiative would also align with a broader effort to localize its AI infrastructure through the newly launched “OpenAI for Countries” program. Introduced earlier this month, the initiative aims to partner with governments aligned with U.S. geopolitical and regulatory interests to expand AI capabilities within their borders. OpenAI says the program is intended to promote “democratic AI” by ensuring countries have access to localized compute resources and services.
Further anchoring OpenAI’s interests in the region is MGX, an investment firm linked to a member of the UAE royal family. MGX has participated in OpenAI’s recent funding rounds and is expected to contribute to the company’s ambitious Stargate project, a global AI infrastructure effort aimed at scaling compute power through custom-built data centers.
The UAE has aggressively positioned itself as a regional AI leader in recent years, making it an attractive partner for U.S.-based tech firms seeking regulatory flexibility and strong state backing. However, expanding data infrastructure in the Gulf comes with its own set of geopolitical and privacy concerns, especially as the region plays an increasingly strategic role in AI development and resource allocation.
If the data center deal moves forward, it would mark a significant milestone in OpenAI’s international expansion strategy—one that could set the tone for how and where the company deploys its most advanced models and infrastructure moving forward.
