UAE to Invest Billions in AI Data Center in France

France and the UAE Announce Major AI Data Center Investment

Prior to the commencement of the Artificial Intelligence Action Summit in Paris, the French presidency has revealed the first in a series of anticipated financial commitments concerning AI development.

An agreement has been formalized between France’s Emmanuel Macron and Mohamed bin Zayed Al Nahyan of the United Arab Emirates, outlining a substantial investment for the construction of a large-scale data center specifically for artificial intelligence within France.

Significant Financial Commitment

Reports from AFP indicate that France and the UAE are prepared to allocate between “€30 to €50 billion” – equivalent to $31 to $52 billion based on current exchange rates – to establish an AI campus.

The majority of this funding will be directed towards building a data center boasting a capacity of up to 1GW.

Streamlined Data Center Approvals

France’s digital and AI minister, Clara Chappaz, announced on Thursday that the nation has pinpointed 35 potential locations suitable for new data center development.

These locations will benefit from expedited administrative approvals, and the UAE’s investment in data centers is expected to leverage this streamlined process.

Leveraging France’s Energy Sources

Approximately 65% of France’s electricity is generated by nuclear power plants.

An additional 25% comes from renewable energy sources.

France is capitalizing on the AI Action Summit to attract foreign investment, particularly for energy-intensive data centers, as major technology companies strive to minimize their carbon footprint.

Investment Consortium Details

The data center project in France will be supported by a consortium of French and Emirati investors.

MGX, an Emirati investment firm specializing in artificial intelligence, will be a key contributor to the project.

MGX and Previous Investments

MGX was previously identified as an initial investor in Stargate, a large-scale AI investment initiative spearheaded by SoftBank and OpenAI.

Chappaz expressed optimism regarding the future prospects of France and Europe, referencing both Stargate and the recent advancements made by Chinese AI startup DeepSeek.

A Beginning of Further Investment

“The sheer scale of these two announcements demonstrates that this is merely the starting point,” Chappaz stated at a tech meetup hosted by Balderton and Photoroom on Thursday evening.

She further emphasized that “this technology presents us with an opportunity to close the gap.”

Upcoming Summit and Discussions

Heads of state will convene in Paris on Monday and Tuesday to engage with leading figures in the global technology sector.

Further investment agreements and a joint statement are anticipated, potentially addressing the environmental implications of artificial intelligence.

Key Attendees at the AI Action Summit

Expected attendees include U.S. Vice President J.D. Vance, China’s Vice Premier Zhang Guoqing, European Commission President Ursula von der Leyen, and German Chancellor Olaf Scholz.

The summit will be held at the Grand Palais in Paris.

Further details on the Artificial Intelligence Action Summit in Paris can be found in our comprehensive coverage.