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The United Arab Emirates has committed to a multi-billion-dollar investment to establish a cutting-edge AI data center in France. The agreement was signed by French President Emmanuel Macron and UAE President Mohamed bin Zayed Al Nahyan, marking a significant step in strengthening bilateral cooperation in artificial intelligence and digital infrastructure.
The announcement anticipates the Artificial Intelligence Action Summit in Paris, at which global leaders and industry experts will convene to deliberate on advancements in artificial intelligence and the associated policy frameworks. This investment is anticipated to be one of multiple initiatives designed to establish France as a frontrunner in the artificial intelligence sector.
As reported by the AFP, France and the United Arab Emirates may allocate between €30 billion and €50 billion (equivalent to $31 billion to $52 billion at current exchange rates) for the establishment of an artificial intelligence campus. The majority of the investment will be allocated to the establishment of a data centre with a capacity of up to 1 gigawatt (GW).
Clara Chappaz, France’s digital and AI minister, announced that the country has pinpointed 35 potential sites for the development of new data centres, complete with expedited administrative approvals. The investment in data centres in the UAE is poised to leverage that framework effectively.
Approximately 65% of the electricity generated in France is sourced from nuclear power facilities. Approximately 25% of the country’s electricity is sourced from renewable energy. While major tech firms work to lessen their environmental impact, France is seizing the moment at the AI Action Summit to draw in international investments, particularly for the energy-intensive data centres.
A group of investors from France and the UAE is poised to back the data centre project in France. MGX, the Emirati investment firm with a focus on artificial intelligence, is set to make a significant contribution.
MGX was recognised as one of the early investors in Stargate, the significant AI investment initiative spearheaded by SoftBank and OpenAI. In discussing the recent breakthrough by Chinese AI startup DeepSeek and its implications for Stargate, Chappaz expressed optimism regarding the future prospects for France and Europe.
“Just the magnitude and the scale between these two announcements show that this is just the beginning,” she said at a tech meetup organized by Balderton and Photoroom on Thursday evening. “Because this technology is our opportunity to catch up,” she added.
On Monday and Tuesday, leaders from around the world will gather in Paris to engage with prominent figures in the tech industry. It’s probable that they will reveal additional investment agreements along with a collaborative statement. The diplomatic agreement might centre on the ecological effects of artificial intelligence.
The Grand Palais in Paris is set to welcome U.S. Vice President J.D. Vance, China’s Vice Premier Zhang Guoqing, European Commission President Ursula von der Leyen, and Chancellor of Germany Olaf Scholz for the upcoming summit.
