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Wednesday, March 19, 2025

France and UAE to invest billions in Europe’s largest 1GW AI data center project

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France and the United Arab Emirates (UAE) have announced a landmark partnership to invest billions of dollars into the development of Europe’s largest 1GW AI data center.

This ambitious project, set to be built in France, marks a significant step forward in global AI infrastructure, aiming to support the ever-growing demand for high-performance computing. The multi-billion dollar investment underscores the strong and evolving ties between the two nations, as they work together to advance innovation in artificial intelligence, technology, and sustainable development.

The plan to build a state-of-the-art AI data center in France was announced on February 6, 2025, following a meeting between UAE President Sheikh Mohamed bin Zayed Al Nahyan and French President Emmanuel Macron at the Élysée Palace. The two leaders discussed expanding bilateral ties, particularly in economic, investment, and cultural domains.

“The two leaders expressed their desire to create a strategic partnership in the field of AI and committed to exploring collaborations on projects and investments supporting the development of the AI-value chain,” according to the joint Franco-Emirati statement.

The two leaders also agreed to explore potential collaborations and other investments in AI. The Franco-Emirati project includes “investments in French and Emirati AI, the acquisition of cutting-edge semiconductors, data centers, the development of talent and the implementation of virtual embassies for data to enable the implementation of sovereign AI and cloud infrastructure in both countries,” reads a statement from the Élysée presidential palace.

Sheikh Mohamed bin Zayed Al Nahyan and Emmanuel Macron were present at the signing of the UAE-France Framework for Cooperation in Artificial Intelligence. The agreement was signed on behalf of the UAE by Khaldoon Khalifa Al Mubarak, Chairman of the Executive Affairs Authority and member of the Abu Dhabi Executive Council, alongside his role in the Abu Dhabi Artificial Intelligence and Advanced Technology Council. Jean-Noël Barrot, Minister for Europe and Foreign Affairs, and Éric Lombard, Minister for the Economy, Finance, and Industrial and Digital Sovereignty represented France at the signing ceremony.

This ambitious initiative marks a significant leap in the longstanding and strategic partnership between the two nations, strengthening their cooperation across a wide range of sectors.

One-gigawatt AI data center

This partnership will bring to life a one-gigawatt AI data center campus in France, supported by an estimated investment of €30 billion to €50 billion (roughly $31 billion to $51 billion). The project, under the joint UAE-France Framework Agreement, is set to be among the largest AI-focused infrastructure developments in the world.

The data center, which will be built in France, will be a pioneering step toward supporting the growing needs of AI technologies. With a capacity of one gigawatt, it will surpass traditional cloud data centers in scale, rivalling projects from tech giants like Google and Microsoft.

The colossal scale of the project is a direct response to the increasing demand for high-power computing resources necessary for AI workloads, such as high-performance GPUs and advanced networking systems.

A consortium of French and Emirati investors will back the data center, with UAE investment firm MGX, specializing in AI, playing a significant role. The initial investment tranche is expected to be announced in May at the Choose France summit, an event that encourages global multinational investments in France.

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