UAE Revises AI Data Center Plan After Iranian Attacks

The United Arab Emirates is revising plans for one of its biggest artificial intelligence infrastructure projects after Iranian attacks on technology facilities in the Gulf prompted officials to rethink how critical AI infrastructure should be protected.

The project was originally envisioned as a roughly 10-square-mile AI campus in Abu Dhabi with 5 gigawatts of computing capacity. Four people familiar with the discussions told Reuters that the UAE is now considering spreading the facilities across multiple locations around the country, potentially making the network more resilient to drone and missile attacks.

Officials are also considering additional security measures, including underground construction, blast-resistant concrete, backup power and cooling systems, as well as air-defense equipment capable of intercepting drones and missiles. Some facilities handling especially sensitive data, including potential military workloads, could potentially be located inside mountain areas in northern parts of the UAE.

The changes follow attacks in March that damaged two Amazon Web Services data centers in the UAE and another facility in Bahrain. Iran later issued a warning that included the UAE's Stargate project among potential targets. The planned AI complex is located near Al Dhafra Air Base, which hosts U.S. forces and has also faced attacks during the conflict.

The AI project is central to the UAE's ambition to become a global artificial intelligence hub and diversify its economy beyond oil. It is being developed by G42 in partnership with major U.S. technology companies as part of the Stargate initiative involving OpenAI, Oracle and SoftBank. The arrangement also gives the UAE access to advanced Nvidia AI chips while requiring it to reduce AI-related ties with China.

Construction of the first phase, known as Stargate UAE, began last year. The $30 billion project initially targeted a 1-gigawatt compute cluster, with the first 200 megawatts expected to come online this year. Oracle Chairman Larry Ellison has said the completed system could eventually connect UAE government agencies and commercial institutions to advanced AI models.

G42 said the project's details are continuously reviewed according to the security and resilience standards expected for infrastructure of its scale, while OpenAI said it was making good progress with the UAE on its AI plans. The companies did not provide details on how the possible redesign could affect costs or construction schedules.

The rethink illustrates how geopolitical conflict is increasingly influencing the physical architecture of the AI industry. As data centers become strategically important infrastructure, governments and technology companies are having to consider not only electricity, cooling and connectivity, but also their ability to withstand military and other physical threats.