France and the United Arab Emirates have signed a landmark agreement to invest between €30 billion and €50 billion ($31-52 billion) in a 1-gigawatt AI data center in France. The project, announced Thursday after a meeting between French President Emmanuel Macron and Emirati leader Mohamed bin Zayed Al-Nahyan, is part of a broader strategic partnership between the two nations focused on AI infrastructure, chip acquisition, and talent development.
Key Takeaways:
- €30-50 billion investment in a 1GW AI data center in France, with additional AI-focused initiatives.
- Joint UAE-France AI partnership includes chip procurement, talent development, and sovereign AI cloud infrastructure.
- 35 sites pre-identified in France to fast-track AI data center approvals.
- More AI investment announcements expected at the upcoming AI Action Summit in Paris.
The AI data center will serve as the core of a larger AI-focused campus in France, backed by a consortium of Emirati and French investors, including MGX, an Abu Dhabi-based investment firm specializing in artificial intelligence. While the final location has yet to be determined, the French government has pre-approved 35 sites for data centers, ensuring a streamlined approval process.
This initiative comes as France seeks to position itself as a major player in AI, leveraging its nuclear-powered energy grid—where 65% of electricity comes from nuclear sources—to attract AI investments. The project also aligns with broader European efforts to compete with the U.S. and China in AI innovation.
Beyond infrastructure, the agreement outlines investment in advanced semiconductor chips and the establishment of “virtual data embassies” to enable sovereign AI and cloud computing capabilities for both nations. France and the UAE view this as a long-term commitment to developing an independent AI ecosystem.
The announcement sets the stage for next week’s AI Action Summit in Paris, where global leaders, including U.S. Vice President J.D. Vance, European Commission President Ursula von der Leyen, and China’s Vice Premier Zhang Guoqing, will convene to discuss AI’s geopolitical and economic implications. More AI-related investment announcements are expected at the event, further signaling Europe’s ambitions in the AI race.