UAE to invest billions to build AI data center in France
A few days before the artificial intelligence campaign -top in Paris, the French presidency announced the first of various expected financial initiatives regarding AI. The French Emmanuel Macron and the Mohamed Bin Zayed Al Nahyan of the United Arab Emirates have signed an agreement for an important investment to build a huge data center that focuses on artificial intelligence in France.
By one AFP reportFrance and the VAE could spend “€ 30 to € 50 billion” ($ 31 to 52 billion at the current exchange rates) to build an AI campus. Most investments would go to a data center with a capacity of up to 1 GW.
On Thursday morning, the French digital and AI minister Clara Chappaz said that France has identified 35 locations that can be used to build new data centers with FAST-track administrative approvals. The investment investment of the VAE will probably benefit from that framework.
About 65% France’s electricity production comes from nuclear power stations. The country also gets around 25% of its electricity from renewable sources. While large technology companies have difficulty reducing their CO2 footprint, France uses the AI Action Summit as an opportunity to attract foreign investments, especially for those powerful data centers.
A consortium of French and Emirati investors will support the data center project in France. MGX, the Emirati Investment Firm that focuses on artificial intelligence, will contribute.
MGX was also mentioned as one of the first investors in Stargate, the large-scale AI investment project led by Softbank and OpenAi. In a commentary on the recent breakthrough of Stargate and Chinese AI Startup Deepseek, Chappaz sounded hopeful about the future perspectives of France and Europe.
“Only the size and scale between these two announcements show that this is just the beginning,” she said on a technical meetup organized by Balderton and Photoroom on Thursday evening. “Because this technology is our chance to catch up,” she added.
On Monday and Tuesday, the heads of state will come to Paris to meet global technical leaders. They will probably announce more investment agreements and a joint statement. The diplomatic agreement may focus on the environmental impact of artificial intelligence.
The American Deputy President JD Vance, the Deputy Prime Minister of China, Zhang Guoqing, chairman of the European Commission Ursula von der Leyen and Chancellor of Germany Olaf Scholz is all expected to go to the Grand Palais in Paris for the top.
