UAE restructures AI data center project after Iranian threats

The United Arab Emirates is revising plans for its 5-gigawatt artificial intelligence data center project—one of the largest outside the United States—amid rising tensions with Iran. Six sources familiar with the matter told Reuters that authorities are reconsidering how and where to build the critical infrastructure, now exploring the distribution of data centers across multiple sites nationwide instead of a single complex in Abu Dhabi.

According to four sources, the project, which was initially planned to cover 26 square kilometers, will now include additional security measures such as air defenses and constructing some facilities underground to protect against drone and missile attacks. Project details are under continuous review to ensure security and operational resilience, according to G42, the company leading the development.

This project is a cornerstone of the UAE’s ambitions to become a global AI powerhouse and is being developed in partnership with US technology firms including Nvidia, Oracle, and Cisco. The UAE has agreed to scale back its AI cooperation with China in exchange for access to advanced American technologies. The project is led by G42, which is controlled by Tahnoun bin Zayed Al Nahyan.

Construction of the first phase began last year, with a $30 billion investment and an initial capacity of 1 gigawatt, under the name Stargate Emirates. The first 200 megawatts are expected to come online this year. The project aims to connect UAE government agencies and businesses to the world’s most advanced AI models.

Security upgrades after Iranian threats

The review of plans followed Iranian attacks targeting technology infrastructure in the region, including Amazon data centers in the UAE and Bahrain in March. Iranian forces released a video warning that the Stargate project could be a potential target, revealing its location near Al Dhafra Air Base, which hosts US forces.

Sources confirmed that the changes include integrating air defense and drone and missile interception systems, using blast-resistant concrete, and building facilities underground or within mountains to protect sensitive data, especially for military use. Construction on the first phase continues with added security measures, while the rest of the project will be spread across multiple locations.