US-UAE AI Data Campus Deal Faces Security Hurdles Despite High-Profile Announcement

US-UAE multi-billion dollar AI data campus deal far from finalised, sources say

ABU DHABI, June 6 (Reuters) - A multi-billion dollar deal to build one of the world's largest data centre hubs in the United Arab Emirates with U.S. technology is far from being concluded due to persistent concerns around security, sources familiar with the matter told Reuters. The U.S. and the wealthy Gulf state unveiled the massive artificial intelligence campus project set to contain a cluster of powerful data centres during President Donald Trump's two-day visit to Abu Dhabi last month. The planned 10-square-mile (26-sq-km) site is being funded by G42, an Emirati state-linked tech firm that is driving the development of its artificial intelligence industry. Technology giants Nvidia (NVDA.O), opens new tab, OpenAI, Cisco (CSCO.O), opens new tab, and Oracle, along with Japan's SoftBank (9434.T), opens new tab, are working with G42 to build the first phase, opens new tab, known as Stargate UAE, set to go online in 2026. The project, which plans to use advanced Nvidia AI chips, has been promoted by Trump officials as a win in steering Gulf states toward U.S. technology over Chinese alternatives. But according to five sources briefed on the project, U.S. officials have yet to determine the security conditions to export the advanced chips or how the agreement with the Gulf state will be enforced, leaving the deal far from resolved. During Trump's visit, Abu Dhabi pledged to align its national security regulations with Washington, including safeguards to prevent the diversion of U.S.-origin technology. But U.S. officials remain cautious about the UAE's close relationship with China, four of the sources said, noting that the concerns are consistent with those raised during both the Biden administration and Trump's first term, primarily around the Gulf state's reliability as a strategic partner. The sources did not specify whether new evidence had emerged, but said existing concerns remain unresolved. During Trump's first term, the UAE and other Gulf states moved forward with deploying Huawei 5G technology despite U.S. objections. Others in the administration also doubt whether the UAE, despite its intentions, can prevent U.S. technology from reaching Washington's adversaries, four of the sources said. A White House spokesperson referred Reuters to the Commerce Department, which did not respond to a request for comment. Neither did the UAE government. Four sources said the U.S. administration had no clear timeline for finalising the deal. Abu Dhabi would need to accept yet-to-be-defined U.S. controls on the technology, but it could also request amendments that may delay final approval, they said. Two sources said U.S. controls would likely prohibit the use of Chinese technology and restrict the employment of Chinese nationals at the site that is being referred to as an AI campus. The administration remains committed to concluding the deal, four of the sources said, but noted there was opposition among Republicans and Democrats over concerns regarding the UAE's ties with China. Stargate UAE is scheduled to come online next year with an estimated 100,000 advanced Nvidia chips. The 1-gigawatt project will use Nvidia's Grace Blackwell GB300 systems, currently the most advanced AI server that Nvidia offers. Although smaller than the U.S. state of Maine, the UAE is a influential Middle Eastern player known for its strategic hedging that has seen it forge close ties with China and Russia. Last year, under pressure from the Biden administration, G42 ripped out Chinese hardware and sold its Chinese investments. In return, it gained better access to advanced American technology, while Microsoft (MSFT.O), opens new tab acquired a $1.5 billion stake in G42. Nevertheless, major Chinese firms Huawei and Alibaba Cloud remain active in the Gulf state, and an organised AI chip smuggling ring to China has been tracked out of countries including the UAE. The Gulf state has also become a hub for companies evading sanctions imposed on Russia since 2022 over the war in Ukraine. The Trump administration has said that American companies would operate the Emirati-built data centres and offer "American-managed" cloud services throughout the region. The so-called AI campus in Abu Dhabi is supposed to eventually host 5 gigawatts worth of data centres. Reporting by Alexander Cornwell, additional reporting by Karen Freifeld, Editing by Louise Heavens Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence Alexander Cornwell Thomson Reuters Alexander has over a decade of international reporting experience. He is currently a senior correspondent in Jerusalem covering Israel & the Palestinian Territories and was formerly in Dubai where he covered the Arabian Peninsula, including the United Arab Emirates, Saudi Arabia and Yemen, often writing about foreign policy, security and economic-related issues.

US-UAE multi-billion dollar AI data campus deal far from finalised, sources say

The project, which plans to use advanced Nvidia AI chips, has been promoted by Trump officials as a win in steering Gulf states toward US technology over Chinese alternatives. But according to five sources briefed on the project, US officials have yet to determine the security conditions to export the advanced chips or how the agreement with the Gulf state will be enforced, leaving the deal far from resolved.A multi-billion dollar deal to build one of the world's largest data centre hubs in the United Arab Emirates with U.S. technology is far from being concluded due to persistent concerns around security, sources familiar with the matter told Reuters. The U.S. and the wealthy Gulf state unveiled the massive artificial intelligence campus project set to contain a cluster of powerful data centres during President Donald Trump's two-day visit to Abu Dhabi last month. The planned 10-square-mile (26-sq-km) site is being funded by G42, an Emirati state-linked tech firm that is driving the development of its artificial intelligence industry. Technology giants Nvidia, OpenAI, Cisco, and Oracle, along with Japan's SoftBank, are working with G42 to build the first phase, known as Stargate UAE, set to go online in 2026. The project, which plans to use advanced Nvidia AI chips, has been promoted by Trump officials as a win in steering Gulf states toward US technology over Chinese alternatives. But according to five sources briefed on the project, US officials have yet to determine the security conditions to export the advanced chips or how the agreement with the Gulf state will be enforced, leaving the deal far from resolved. During Trump's visit, Abu Dhabi pledged to align its national security regulations with Washington, including safeguards to prevent the diversion of U.S.-origin technology. But U.S. officials remain cautious about the UAE's close relationship with China, four of the sources said, noting that the concerns are consistent with those raised during both the Biden administration and Trump's first term, primarily around the Gulf state's reliability as a strategic partner. The sources did not specify whether new evidence had emerged, but said existing concerns remain unresolved. During Trump's first term, the UAE and other Gulf states moved forward with deploying Huawei 5G technology despite U.S. objections. Others in the administration also doubt whether the UAE, despite its intentions, can prevent U.S. technology from reaching Washington's adversaries, four of the sources said. A White House spokesperson referred Reuters to the Commerce Department, which did not respond to a request for comment. Neither did the UAE government. Four sources said the U.S. administration had no clear timeline for finalising the deal. Abu Dhabi would need to accept yet-to-be-defined U.S. controls on the technology, but it could also request amendments that may delay final approval, they said. Two sources said U.S. controls would likely prohibit the use of Chinese technology and restrict the employment of Chinese nationals at the site that is being referred to as an AI campus. The administration remains committed to concluding the deal, four of the sources said, but noted there was opposition among Republicans and Democrats over concerns regarding the UAE's ties with China. Stargate UAE is scheduled to come online next year with an estimated 100,000 advanced Nvidia chips. The 1-gigawatt project will use Nvidia's Grace Blackwell GB300 systems, currently the most advanced AI server that Nvidia offers. Although smaller than the U.S. state of Maine, the UAE is a influential Middle Eastern player known for its strategic hedging that has seen it forge close ties with China and Russia. Last year, under pressure from the Biden administration, G42 ripped out Chinese hardware and sold its Chinese investments. In return, it gained better access to advanced American technology, while Microsoft acquired a $1.5 billion stake in G42. Nevertheless, major Chinese firms Huawei and Alibaba Cloud remain active in the Gulf state, and an organised AI chip smuggling ring to China has been tracked out of countries including the UAE. The Gulf state has also become a hub for companies evading sanctions imposed on Russia since 2022 over the war in Ukraine. The Trump administration has said that American companies would operate the Emirati-built data centres and offer "American-managed" cloud services throughout the region. The so-called AI campus in Abu Dhabi is supposed to eventually host 5 gigawatts worth of data centres.

UAE's data center project with U.S. tech firms faces security concerns By Investing.com

Investing.com -- A massive deal to create one of the world's largest data center hubs in the United Arab Emirates (UAE) with American technology, continues to face persistent security concerns, according to a Friday report by Reuters. The deal, worth billions of dollars, is reportedly far from finalized. The proposed site, spanning 10 square miles, is financed by G42, a tech company linked to the Emirati state. G42 is spearheading the development of the UAE's artificial intelligence (AI) industry. Tech giants Nvidia (NASDAQ:NVDA), OpenAI, Cisco (NASDAQ:CSCO), Oracle (NYSE:ORCL), and Japan's SoftBank (TYO:9984) are collaborating with G42 on the initial phase of the project, dubbed Stargate UAE, which is slated to launch in 2026. However, U.S. officials are yet to establish the security conditions for exporting the advanced chips or how the agreement with the Gulf state will be enforced. This leaves the deal unresolved. During a visit by then-President Trump, Abu Dhabi pledged to align its national security regulations with Washington's, including measures to prevent the misuse of U.S. technology. Concerns remain about the UAE's close ties with China, with the report noting that these issues have been consistent during both Biden and Trump administrations. The primary concern is the reliability of the Gulf state as a strategic partner. The report didn't indicate if new evidence had surfaced, but stated that existing concerns are still not addressed. During Trump's first term, the UAE and other Gulf states proceeded with the deployment of Huawei 5G technology, despite opposition from the U.S. Some U.S. officials also question whether the UAE can effectively prevent American technology from reaching Washington's adversaries, the report added.

US-UAE multi-billion dollar AI data campus deal far from finalised, sources say

ABU DHABI (Reuters) -A multi-billion dollar deal to build one of the world's largest data centre hubs in the United Arab Emirates with U.S. technology is far from being concluded due to persistent concerns around security, sources familiar with the matter told Reuters. The U.S. and the wealthy Gulf state unveiled the massive artificial intelligence campus project set to contain a cluster of powerful data centres during President Donald Trump's two-day visit to Abu Dhabi last month. The planned 10-square-mile (26-sq-km) site is being funded by G42, an Emirati state-linked tech firm that is driving the development of its artificial intelligence industry. Technology giants Nvidia, OpenAI, Cisco, and Oracle, along with Japan's SoftBank, are working with G42 to build the first phase, known as Stargate UAE, set to go online in 2026. The project, which plans to use advanced Nvidia AI chips, has been promoted by Trump officials as a win in steering Gulf states toward U.S. technology over Chinese alternatives. But according to five sources briefed on the project, U.S. officials have yet to determine the security conditions to export the advanced chips or how the agreement with the Gulf state will be enforced, leaving the deal far from resolved. During Trump's visit, Abu Dhabi pledged to align its national security regulations with Washington, including safeguards to prevent the diversion of U.S.-origin technology. But U.S. officials remain cautious about the UAE's close relationship with China, four of the sources said, noting that the concerns are consistent with those raised during both the Biden administration and Trump's first term, primarily around the Gulf state's reliability as a strategic partner. The sources did not specify whether new evidence had emerged, but said existing concerns remain unresolved. During Trump's first term, the UAE and other Gulf states moved forward with deploying Huawei 5G technology despite U.S. objections. Others in the administration also doubt whether the UAE, despite its intentions, can prevent U.S. technology from reaching Washington's adversaries, four of the sources said. A White House spokesperson referred Reuters to the Commerce Department, which did not respond to a request for comment. Neither did the UAE government. Four sources said the U.S. administration had no clear timeline for finalising the deal. Abu Dhabi would need to accept yet-to-be-defined U.S. controls on the technology, but it could also request amendments that may delay final approval, they said. Two sources said U.S. controls would likely prohibit the use of Chinese technology and restrict the employment of Chinese nationals at the site that is being referred to as an AI campus. The administration remains committed to concluding the deal, four of the sources said, but noted there was opposition among Republicans and Democrats over concerns regarding the UAE's ties with China. Stargate UAE is scheduled to come online next year with an estimated 100,000 advanced Nvidia chips. The 1-gigawatt project will use Nvidia's Grace Blackwell GB300 systems, currently the most advanced AI server that Nvidia offers. Although smaller than the U.S. state of Maine, the UAE is a influential Middle Eastern player known for its strategic hedging that has seen it forge close ties with China and Russia. Last year, under pressure from the Biden administration, G42 ripped out Chinese hardware and sold its Chinese investments. In return, it gained better access to advanced American technology, while Microsoft acquired a $1.5 billion stake in G42. Nevertheless, major Chinese firms Huawei and Alibaba Cloud remain active in the Gulf state, and an organised AI chip smuggling ring to China has been tracked out of countries including the UAE. The Gulf state has also become a hub for companies evading sanctions imposed on Russia since 2022 over the war in Ukraine. The Trump administration has said that American companies would operate the Emirati-built data centres and offer "American-managed" cloud services throughout the region. The so-called AI campus in Abu Dhabi is supposed to eventually host 5 gigawatts worth of data centres. (Reporting by Alexander Cornwell, additional reporting by Karen Freifeld, Editing by Louise Heavens)