The Trump administration is collaborating with the United Arab Emirates to establish a significant data center in Abu Dhabi, which is projected to be the largest artificial intelligence hub outside the U.S.
This AI campus was introduced during President Trump’s visit to the UAE and will have a capacity of 5 gigawatts, expanding over an area of more than 10 square miles, according to the Commerce Department’s announcement on Thursday.
The data centers at Qasr al Watan will serve as a regional base for Hyperscalers, U.S. tech companies specializing in cloud computing and data management. This setup will enable these companies to offer low-latency services to nearly half of the global population within 2,000 miles of the UAE.
Commerce Secretary Howard Lutnick mentioned in a statement, “American companies are managing data centers in the UAE and delivering U.S.-controlled cloud services throughout the area. This agreement marks a significant step in realizing President Trump’s vision for U.S. AI dominance by extending world-class technology partnerships in the region.”
Several AI-related agreements have emerged during the Trump administration’s engagements with Gulf nations this week. While promoting U.S. AI oversight is a key policy objective, some worry that these partnerships could raise national security concerns.
Senate Democratic leader Chuck Schumer criticized Trump’s backing of initiatives to sell advanced U.S. chip technology to Saudi Arabia and the UAE, describing it as a troubling compromise.
Schumer stated that Trump has “greenlighted sales of sensitive U.S. chip technology in exchange for an ambiguous promise of increased foreign investment,” adding, “This deal poses considerable risks since the UAE and Saudi Arabia provide unclear assurances about how sensitive technology will be safeguarded from the Chinese government and manufacturers.”
Lutnick emphasized that the data center agreement contains “strong security assurances” designed to prevent the repurposing of U.S. technology.
Concerns have been rising in recent months regarding U.S. chips potentially being smuggled into China, leading to fears about U.S. technology inadvertently falling into foreign hands.
A bipartisan group of lawmakers introduced a bill on Thursday that would mandate location verification for AI chips to ensure chip exporters report any repurposing of technology. Senator Tom Cotton (R-Ark.), known for his critical stance toward China, previously presented a similar proposal last week.
Additionally, the White House announced that the U.S. and UAE also signed AI agreements tied to a $1.4 trillion “investment framework” initially revealed in March. As part of this arrangement, the UAE has committed to investing in, constructing, or financing U.S. data centers which are expected to match the scale and capability of those in the UAE.
The White House reaffirmed that the UAE will further align its national security regulations with those of the United States, emphasizing safeguards against the unauthorized diversion of U.S. technology.
