AI Mega Hub in UAE Faces Delays Over U.S. Security Fears * SciTechTimes.com

A highly ambitious multi-billion-dollar artificial intelligence data campus planned for the United Arab Emirates is facing serious headwinds, as U.S. security concerns continue to stall the finalization of the deal. Despite being billed as a landmark agreement that would cement American tech dominance in the Gulf, insiders reveal that the project is anything but settled.

Unveiled last month during President Donald Trump’s two-day visit to Abu Dhabi, the deal centers around the creation of one of the world’s largest AI-driven data center hubs. Set to be built over a sprawling 10-square-mile (26-square-kilometer) site, the initiative is being bankrolled by G42, an Emirati government-linked tech powerhouse at the forefront of the country’s AI ambitions.

The project, dubbed Stargate UAE, is slated to feature a network of cutting-edge data centers powered by advanced Nvidia AI chips. Heavyweight tech players like Nvidia, OpenAI, Cisco, Oracle, and Japan’s SoftBank are collaborating on the venture’s first phase, with plans to bring it online by 2026.

Security Red Flags

While the UAE has publicly pledged to align its national security standards with those of Washington — promising safeguards against the misuse or unauthorized transfer of U.S. technology — behind the scenes, U.S. officials remain unconvinced. According to five sources familiar with the discussions, key security frameworks surrounding the export of advanced AI chips and the governance of the data campus remain unresolved.

Much of Washington’s hesitation stems from the UAE’s historically close ties to China. Despite U.S. pressure, Abu Dhabi and other Gulf nations had previously pressed ahead with deploying Huawei’s 5G infrastructure — a move that raised alarms within American intelligence circles during Trump’s first term and the Biden administration.

Four sources noted that while no new intelligence has necessarily surfaced, the longstanding trust issues linger. Some in the U.S. administration are skeptical about whether the UAE can reliably prevent American AI technologies from eventually falling into the hands of geopolitical adversaries like China.

No Clear Timeline

Currently, there’s no firm timeline for finalizing the agreement. Four sources confirmed to Reuters that any deal would hinge on Abu Dhabi accepting yet-to-be-determined U.S. controls — including probable bans on Chinese technology at the campus and strict limitations on Chinese nationals working there. Such stipulations could lead to further delays, especially if the UAE seeks to negotiate modifications.

Adding to the uncertainty is political division in Washington. Although the Trump administration remains committed to pushing the deal through, bipartisan unease persists over the UAE’s dual-track foreign policy, which sees the Gulf nation maintaining close ties with both Washington’s allies and rivals.

A Complex Regional Game

Despite its relatively small size, the UAE has become a geopolitical heavyweight in the Middle East, skillfully balancing relationships with the U.S., China, and Russia. Under pressure from the Biden administration last year, G42 agreed to remove Chinese hardware and divest its Chinese investments, securing deeper access to American technology. In a show of confidence, Microsoft purchased a $1.5 billion stake in G42 as part of the reshuffle.

Still, the presence of major Chinese firms like Huawei and Alibaba Cloud in the UAE persists, and there have been credible reports of AI chip smuggling operations channeling restricted hardware into China via third-party countries, including the Emirates. Complicating matters further, the UAE has emerged as a business haven for companies skirting international sanctions imposed on Russia since the invasion of Ukraine in 2022.

What’s at Stake

The Stargate UAE data campus, once operational, is expected to run on approximately 100,000 of Nvidia’s Grace Blackwell GB300 AI chips, the company’s most advanced AI server technology to date. The full site aims to eventually scale up to an astonishing 5 gigawatts of data processing capacity, dwarfing most existing regional data hubs.

In theory, American companies would own and operate the Emirati-built data centers, providing U.S.-managed cloud services throughout the Middle East. The project has been touted by Trump officials as a strategic counterbalance to Chinese tech expansion in the region.

Did You Know?

While Stargate UAE has captured headlines, it’s part of a much broader global race for AI infrastructure dominance. Interestingly, Microsoft and Amazon Web Services are both aggressively expanding their own cloud and AI data centers in the Gulf. Meanwhile, Saudi Arabia — the UAE’s regional rival — is building its own AI megaproject, reportedly backed by Chinese investors, underscoring how the Middle East is fast becoming a global AI battleground.

As for Nvidia, the company’s Grace Blackwell GB300 chips are considered the crown jewel of AI hardware today, capable of processing massive AI models at unprecedented speeds. Their deployment in Stargate UAE, if it proceeds, would make the campus one of the most powerful AI hubs outside the United States and China.

For now, though, it seems the future of this AI mega-campus hangs in a delicate diplomatic balance.