UAE revises AI data center plan after Iranian attacks

The United Arab Emirates is quietly revising its AI data center plan following Iranian attacks during the Iran war, Reuters reported. Six people familiar with the matter said the shift affects one of the largest AI infrastructure projects outside the United States. Authorities are now weighing new defenses to protect the facilities from future strikes.

What is the UAE's AI data center plan?

The UAE's AI data center plan originally called for a single 10-square-mile campus in Abu Dhabi with 5 gigawatts of capacity. That plan is now shifting toward a network of smaller data centers spread across the country. The change comes as officials look to reduce the risk of a single facility being targeted in an attack.

What is the UAE-US AI Campus?

The UAE-US AI Campus was announced during President Donald Trump's visit to the UAE last year. American tech companies are building it alongside the UAE as the country shifts its economy away from oil. G42, an AI firm led by UAE national security adviser Sheikh Tahnoun bin Zayed al Nahyan, is heading the project.

In exchange for access to Nvidia chips and other U.S. technology, the UAE agreed to cut AI ties with China. It also agreed to invest in the Stargate initiative's American data centers, a joint venture between OpenAI, Oracle and SoftBank. Construction has already begun on the first phase, a $30 billion, 1-gigawatt cluster called Stargate UAE, with the first 200 megawatts due online this year.

G42 said the project is moving forward as planned. The company said its specifics are "subject to continuous review in line with the security, resilience and operational standards expected of critical infrastructure at this scale." OpenAI said it is making progress on the infrastructure needed to support the UAE's AI goals.

Nvidia, Oracle, Cisco and the UAE's advanced technology ministry did not respond to requests for comment. SoftBank declined to comment. It is unclear how close the UAE is to finalizing a new masterplan or how the changes might affect costs and timelines.

Why did Iran attack UAE tech infrastructure?

Iran began firing missiles and drones at Gulf countries hosting U.S. forces in retaliation for U.S. and Israeli airstrikes on Iran. The UAE, which hosts American troops at Al Dhafra Air Base, became a target as a result. Emirati officials started reviewing their AI infrastructure plans soon after the attacks began.

Two Amazon Web Services data centers in the UAE were damaged in attacks in March, along with one in Bahrain. Amazon's cloud services in the region remain disrupted. In April, Iran's armed forces released a video warning that Stargate UAE could be a target, showing a map of the site's location.

Two sources confirmed the site sits near Al Dhafra Air Base on the outskirts of Abu Dhabi. The base has been hit during the war, which started in February. Daniel Benaim, a former U.S. deputy assistant secretary of state for Arabian Peninsula affairs, called the conflict an economic shock for Gulf states that had marketed themselves as safe havens.

How is the UAE protecting its data centers?

Officials are considering several measures to harden the AI data center plan against future attacks. These include building facilities underground and adding air defense systems such as drone and missile interceptors. Electronic jamming equipment is also under review, according to three sources.

The most sensitive data, including military data, may be housed inside mountains. Other countries, including the United States, China and parts of Europe, have built data centers in disused mines, Cold War-era bunkers and caves. The UAE is mostly flat desert, but mountain ranges run through the Ras Al Khaimah and Fujairah emirates in the north and northeast.

Other possible upgrades include blast-resistant concrete and backup power and cooling systems, one source said. Benaim said infrastructure hardening is now necessary across the region. He added that countries nearby will look for ways to cut risk and reassure investors.

What happens next for the UAE's AI data center project?

The first phase of the AI campus is expected to continue as planned. It will include changes to guard against aerial attacks, according to an industry executive and another source. The rest of the project will likely be spread across several locations rather than concentrated in one site.