UAE and Saudi Arabia continue building AI centers despite war — The Japan Times
The United Arab Emirates and Saudi Arabia are continuing to implement large-scale artificial intelligence data center projects despite risks associated with military action by the United States and Iran. UAE state-owned companies have not halted work on an AI campus in Abu Dhabi that is expected to add 5 gigawatts of computing capacity, The Japan Times reports, citing Bloomberg.
According to the agency's sources, additional measures were introduced at the Abu Dhabi site during the peak of the fighting to protect employees. Khazna, backed by the G42 conglomerate and responsible for the campus infrastructure, said it plans to provide the project's first 200 megawatts of capacity in the fourth quarter.
Saudi Arabia's investments
Saudi company Humain, backed by the Public Investment Fund, intends to raise an initial $2.5 billion from local and international investors to build data centers in the kingdom. The company plans to create more than 6 gigawatts of computing capacity and says it remains on schedule despite the war.
The UAE and Saudi Arabia view the development of technological infrastructure as one avenue for diversifying their economies beyond the oil and gas sector. Both states emphasize the availability of substantial land resources and energy capacity required by developers of artificial intelligence systems.
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Infrastructure attacks and risks for partners
At the same time, the projects depend on international partners, including OpenAI, Microsoft, and Nvidia. In July, satellite imagery recorded damage to two Amazon data centers in Bahrain after Iran said it had launched missile strikes on those facilities. A representative of the Islamic Revolutionary Guard Corps then told the state Tasnim agency that the target was a “major enemy information-processing asset.”
In March, three Amazon Web Services sites in the UAE and Bahrain were damaged by drones. Amazon reported degraded service performance in the region and advised customers to avoid parts of the network disrupted by the attacks.
Amazon recently announced that it will provide up to 50 megawatts of capacity in Saudi Arabia's first AI zone by 2028. Microsoft confirmed that its Saudi Arabia East data center region is due to become available to customers in November 2026. The administration of U.S. President Donald Trump also eased export restrictions for the UAE this year, allowing certain companies, including G42, to buy advanced AI chips without having to obtain permission from Washington each time.
According to an assessment by Integrated Security Systems, additional hardening of data centers, including the installation of perimeter walls and server protection, could increase their cost by about 5–7%. Experts also point out that U.S. policy on export controls for advanced chips remains important for regional projects.
