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The United Arab Emirates is revising plans for a massive AI data centre project after the Iran war triggered a rethink over how and where critical infrastructure should be built.
Six people familiar with the discussions told Reuters that the changes could reshape one of the world’s largest AI infrastructure projects outside the United States.
The original plan called for a 5-gigawatt AI campus covering about 10 square miles in Abu Dhabi.
The project will likely become a network of data centres across the UAE, according to four sources familiar with the plans. The sources spoke anonymously because the discussions remain private.
Officials are also examining ways to protect the facilities from potential drone and missile attacks.
Measures under consideration include air defence systems and underground construction.
The planned UAE-US AI Campus forms a central part of the UAE’s ambition to become a global artificial intelligence hub.
The project was announced during US President Donald Trump’s visit to the UAE last year.
G42, an AI company controlled by UAE National Security Adviser Sheikh Tahnoun bin Zayed Al Nahyan, leads the project.
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The UAE agreed to reduce its AI ties with China as part of a broader arrangement that gives the country access to advanced Nvidia chips and other US technology.
The UAE also agreed to invest in the Stargate initiative’s US data centres.
Stargate is a joint venture involving OpenAI, Oracle and SoftBank. The initiative aims to build large-scale AI infrastructure.
The first phase of the project is known as Stargate UAE.
Construction began last year on a $30 billion, 1-gigawatt computing cluster. The first 200 megawatts are expected to become operational this year.
Oracle Chairman and Chief Technology Officer Larry Ellison has said the completed project will have enough capacity to connect UAE government agencies and commercial institutions to advanced AI models.
G42 told Reuters that construction was progressing as planned.
“The project’s specifics are subject to continuous review in line with the security, resilience and operational standards expected of critical infrastructure at this scale,” the company said.
OpenAI also said it was working with the UAE on its AI plans and making progress on infrastructure and adoption priorities.
Nvidia, Oracle, Cisco and the UAE’s advanced technology ministry did not respond to Reuters’ requests for comment. SoftBank declined to comment.
Sources said Emirati officials began reviewing the AI infrastructure plans after Iran launched missile and drone attacks against Gulf states hosting US forces.
The attacks followed US and Israeli strikes on Iran, according to the sources.
The conflict has also affected other technology infrastructure in the Gulf.
Two Amazon Web Services data centres in the UAE were damaged during attacks in March. Another facility in Bahrain was also affected.
AWS cloud services in the region remained disrupted according to the company’s latest updates cited by Reuters.
Iranian armed forces also issued a video warning in April that Stargate UAE could become a target.
The video showed a map that purported to identify the location of the complex.
Two people familiar with the project confirmed its location near Al Dhafra Air Base. The base hosts US troops and has faced attacks during the conflict.
The UAE is considering several measures to strengthen the project against aerial attacks.
Sources said some facilities could be built underground.
Officials are also considering placing the most sensitive systems, including infrastructure supporting military data, inside mountains.
Data centres already operate in former mines, bunkers and caves in parts of the United States, China and Europe.
The UAE has mostly flat desert terrain. However, mountain ranges extend through parts of the northern and northeastern emirates, including Ras Al Khaimah and Fujairah.
Air defence systems could also become part of the redesigned project.
Three sources said the plans could include drone and missile interceptors as well as electronic jamming equipment.
Other measures could include blast-resistant concrete, backup power systems and additional cooling capacity.
Daniel Benaim, a former US deputy assistant secretary of state for Arabian Peninsula affairs, described the conflict as an “economic earthquake” for Gulf states.
He said countries across the region would need to strengthen critical infrastructure and reduce risks for international investors and partners.
The first phase of Stargate UAE is expected to continue despite the security review. However, sources said it could include modifications to protect the facilities from aerial attacks.
The remaining capacity would likely be distributed across several locations rather than concentrated in a single large campus.
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