Nvidia is partnering with Khazna, a UAE-based data center developer tied to AI company G42, to build data centers using Nvidia’s Blackwell chips.

Announced on June 11, the collaboration highlights the UAE’s push to strengthen its AI infrastructure.

Khazna plans to build AI clusters with up to 250 megawatts of capacity using Nvidia-certified Blackwell designs.

This move is part of a broader effort by the UAE and Saudi Arabia to boost AI development as part of their economic diversification plans.

The partnership follows several AI-related agreements made during former US President Donald Trump’s visit to the Middle East in May, raising concerns about US control over advanced semiconductor tech.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ UAE’s strategic pivot to AI represents a multi-billion dollar economic diversification bet

The UAE-Nvidia partnership highlights the Gulf nation’s broader strategy to position itself as a global AI hub beyond oil dependency.

This latest collaboration adds to UAE’s growing portfolio of major AI infrastructure deals, including the recently announced OpenAI partnership to build a one-gigawatt computing cluster in Abu Dhabi 1.

G42, the government-backed AI firm involved in both deals, has become a pivotal player in UAE’s technology transition by securing partnerships with Western tech giants while maintaining strong government ties through National Security Adviser Sheikh Tahnoon.

The scale of these investments is remarkable. The UAE is committing to a joint US-UAE 5-gigawatt cluster in Abu Dhabi alone, representing one of the largest concentrated AI infrastructure investments globally 2.

For context, the France-UAE AI data center collaboration announced in February involves €30-50 billion for a 1-gigawatt facility, demonstrating the massive capital commitments Gulf states are making in this sector 3.

2️⃣ Shifting US export policies create strategic openings for Middle Eastern AI ambitions

The Nvidia-G42 partnership reflects a significant shift in US chip export policy toward the Middle East, contrasting with strict controls applied to China.

Under the Biden administration, the US implemented comprehensive AI chip export restrictions valued at $57.5 billion in 2024 4. However, the incoming Trump administration has signaled plans to rescind some of these controls to enhance US competitiveness 5.

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