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

A multi-billion-dollar deal to build one of the world’s largest data center hubs in the United Arab Emirates with US technology is far from being concluded due to persistent concerns around security, sources familiar with the matter tell Reuters.

The US and the wealthy Gulf state unveiled the massive artificial intelligence campus project set to contain a cluster of powerful data centers during President Donald Trump’s two-day visit to Abu Dhabi last month.

The planned 10-square-mile 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, OpenAI, Cisco CSCO.O and Oracle, along with Japan’s SoftBank 9434.T, 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.