The United Arab Emirates is accelerating its AI strategy in 2026. It is combining US technology partnerships, infrastructure investments, and expansion into emerging markets. However, rising regional security threats are targeting critical data systems. As a result, the country is adjusting how it builds and operates its AI infrastructure.
UAE AI strategy expands through infrastructure and partnerships
First, the UAE is following a dual-track AI strategy. It is investing in US technology companies while also developing large language models for underserved markets.
In particular, the recent delivery of Nvidia Blackwell Ultra GPUs—approved by Washington in November—marks a major step forward. These chips will help scale the country’s domestic AI capabilities.
Moreover, a key project is the UAE-US AI Campus in Abu Dhabi. It is expected to become the largest AI data centre hub outside the United States. Its first phase, with a capacity of 200 megawatts, should be operational before the end of 2026. Over time, this will expand to a planned 5 gigawatts.
Global South focus drives investment into Africa and emerging markets
At the same time, the UAE is expanding its global footprint. It has committed $1 billion to develop AI infrastructure across Africa. This move aims to position the country as a bridge between advanced AI economies and underserved regions.
In addition, G42 and Microsoft have launched a separate $1 billion initiative. This includes building a geothermal-powered data centre in Kenya. It also focuses on developing bilingual AI models for local use.
Meanwhile, domestic data shows strong readiness for this expansion. According to the Microsoft AI Economy Institute, more than 70% of the UAE’s working-age population already uses AI tools regularly. Furthermore, independent analysis ranks the country second globally in AI capacity, supported by over 188,000 chips and 6.4 gigawatts of power.
Security risks reshape infrastructure and regional cooperation
However, growing regional tensions are creating new risks. Drone threats have exposed vulnerabilities in data centre infrastructure. As a result, operators are shifting toward distributed systems. This approach reduces reliance on a single location and improves resilience. Nevertheless, these changes come at a cost. Companies must invest more in hardened facilities and advanced defence systems.
At the regional level, a proposed Gulf Cooperation Council framework aims to improve AI resilience. It could help distribute infrastructure across member states. However, challenges remain. Issues such as sovereignty, cost-sharing, and trust may slow progress.
A broader shift beyond oil
Finally, the UAE’s exit from Organization of the Petroleum Exporting Countries reflects a wider economic shift. The country is moving beyond oil and focusing on AI and advanced technologies.
Looking ahead, the government has set an ambitious goal. Within two years, it aims to automate 50% of public services using agentic AI systems.
