France and UAE Invest in 1GW AI Data Center

France and the United Arab Emirates are poised to invest between €30 billion and €50 billion (approximately $31 billion to $52 billion) into the development of a 1GW artificial intelligence (AI) data center along with supplementary AI initiatives. This significant venture was unveiled following a meeting between French President Emmanuel Macron and UAE President Mohamed bin Zayed Al-Nahyan.

Project Details and Future Plans

While the specific site for this AI campus has yet to be finalized, it is confirmed that it will be established within France. The investment extends beyond just the data center; the two nations are also focusing on enhancing chip technology, developing talent, and creating virtual data embassies. These elements aim to foster robust AI and cloud infrastructures across both territories.

Collaboration with Key Players

Details remain limited, but reports suggest that the campus will be constructed by a consortium of significant Franco-Emirati companies, including the MGX investment fund. This fund is a standout investor in notable projects, such as OpenAI’s Stargate, which strives to build an extensive data center infrastructure valued at $500 billion within the United States over the next four years.

Context of the Announcement

The announcement coincides with an international AI summit taking place in Paris, which gathers high-profile representatives from politics and the tech industry. As part of the summit, additional data center investments may be disclosed. Clara Chappaz, France’s digital and AI minister, revealed that the government has earmarked 35 potential sites throughout the nation that are suitable for data centers, with plans to fast-track the planning approval process to benefit developers.

France’s Growing Data Center Landscape

Paris stands out as one of Europe’s primary data center markets, and there is ongoing development across other regions in France. This growth is fueled in part by the country’s availability of clean nuclear energy, which accounts for approximately 65% of its power supply. In November, it was reported that French utility company EDF was negotiating with data center operators to provide power for three separate 1GW data center developments.

EDF’s Initiatives for AI Data Centers

EDF previously initiated Project Giga, a strategic plan aimed at addressing the escalating energy requirements of AI data centers. This project intends to utilize EDF’s land and grid connections to ensure low-carbon power provision for major hyperscalers, reinforcing the alignment between sustainable energy practices and burgeoning AI infrastructure.