A Data Center That’s Bigger Than Monaco

OpenAI’s latest venture to develop a colossal data center in Abu Dhabi has emerged as a defining moment for the global AI industry—a project so vast it would eclipse the size of Monaco. Industry insiders are eyeing this $10 billion-plus initiative not just for its superlative physical footprint, but for the power shift it signals in both AI infrastructure and international alliances.

The planned facility, as reported by TechCrunch and Bloomberg, is expected to span an unprecedented 10 square miles, drawing enough electricity to rival five nuclear reactors. This would make it not only the largest data center campus OpenAI has ever contemplated, but also one of the most formidable on the planet—eclipsing even the company’s own Stargate campus in Texas, which, when complete, will offer 1.2 gigawatts of capacity. In contrast, Abu Dhabi’s installation is targeting a staggering 5 gigawatts, quadrupling even the Texas milestone.

Positioning OpenAI For the Global Stage

This project is orchestrated in partnership with G42, a leading Abu Dhabi-based tech conglomerate, and forms part of the broader “Starg” initiative, which was announced in January. The Starg framework unites OpenAI, SoftBank, and Oracle in a global effort to build high-performance data centers packed with advanced computing hardware. The Abu Dhabi project, however, stands out for its scale—and for its implications.

Industry observers, including those cited by Data Center Dynamics and Biz Chosun, highlight that OpenAI’s strategic leap into the United Arab Emirates is layered with intent. Abu Dhabi offers geographic proximity to major markets in Asia, Europe, and Africa, a stable business environment, and robust digital infrastructure. For OpenAI, this means unmatched access to global customers and talent, while leveraging the UAE’s pro-investment government policies to expedite deployment.

The collaboration is also emblematic of a deeper pivot. As noted by Energy Connects and Bloomberg, the UAE has steadily positioned itself as a hub for AI innovation through the “US-UAE AI Acceleration Partnership”—an agreement intended to solidify bilateral ties and deliver a shared boost to technology agendas. For the UAE, the data center project dovetails with its ambition to transition its economy beyond fossil fuels and foster a thriving tech ecosystem. For OpenAI, it means scaling its compute resources to keep pace with the ever-increasing demands of model training and deployment worldwide.

Opportunities Paired With Daunting Challenges

Yet these opportunities are paired with daunting challenges. The logistics of supporting a 5-gigawatt data campus—particularly one in the Gulf’s challenging climate—will demand state-of-the-art cooling solutions and a highly resilient, sustainable energy supply chain. Environmental concerns are front and center. As TechCrunch underscored, the project will require careful attention to energy sourcing, with increasing scrutiny from environmental advocates and investors over the carbon footprint of large-scale AI infrastructure.

Equally significant is the matter of ethics and governance. The UAE’s history with surveillance and privacy issues has prompted calls for OpenAI and its partners to establish transparent, auditable standards around data handling and AI deployment. Failure to do so could invite regulatory and reputational risks, not just for OpenAI but for the entire AI ecosystem.

The Abu Dhabi data center thus stands as both a technological landmark and a geopolitical inflection point—illustrating the growing interdependence between AI, infrastructure, and international strategy. As OpenAI, G42, and their backers shape the skyline and the data flows of tomorrow, the world will be watching closely—not just to see what feats of computation emerge, but how responsibly and equitably the foundations of the AI future are laid.