UAE plans to invest billions in constructing an AI data center in France

UAE and France Sign Major AI Investment Deal Ahead of AI Action Summit

Massive AI Data Center Planned in France

Ahead of the Artificial Intelligence Action Summit in Paris, the French presidency has unveiled a major financial initiative focused on AI development.

President Emmanuel Macron and Mohamed bin Zayed Al Nahyan of the United Arab Emirates have inked a deal for a multibillion-dollar investment to build a state-of-the-art artificial intelligence data centre in France.

Scale and Investment: An AI campus worth €30–50 billion
The construction of an advanced AI campus might cost between €30 billion and €50 billion ($31 billion and $52 billion) as part of the France-UAE agreement, according to AFP. A sizable amount of this investment will go towards building a high-capacity data centre, which might have a power usage of up to 1GW.

Strategic Locations and Fast-Track Approvals

France’s digital and AI minister, Clara Chappaz, confirmed that 35 pre-approved locations across the country are available for fast-track development of AI data centers.

These expedited administrative procedures will probably help the UAE’s investment.

Development of Green AI and Sustainable Energy
France is a desirable location for AI investments due to its energy infrastructure. About 65% of the nation’s electricity is produced by nuclear power, with the remaining 25% coming from renewable sources. France is using the AI Action Summit to draw in foreign investments in environmentally friendly AI infrastructure as big tech companies look for sustainable ways to lower their carbon footprint.

French-Emirati Consortium and MGX’s Role

The AI data center project will be supported by a joint consortium of French and Emirati investors. A

MGX, an AI investment firm based in the United Arab Emirates, will be essential in financing and supervising the development.

In addition, MGX is an original investor in Stargate, the ambitious AI investment project supported by OpenAI and SoftBank. This puts the UAE in a strong position to influence the quickly changing global AI scene.

AI as a Revolutionary Technology for Europe
Speaking at a tech event organised by Balderton and Photoroom, Chappaz cited recent advances in AI, such as those made by Stargate and the Chinese AI startup DeepSeek, to express optimism about the future of AI in France and Europe.

She said, “The magnitude of these announcements indicates that this is just the beginning.”

Global Leaders to Convene at the AI Action Summit

The AI Action Summit, taking place on Monday and Tuesday in Paris, will bring together world leaders and top tech executives. Several investment deals and policy agreements are expected to be announced, with a particular focus on AI’s environmental impact.

Confirmed attendees include:

• U.S. Vice President J.D. Vance
• China’s Vice Premier Zhang Guoqing
• European Commission President Ursula von der Leyen
• German Chancellor Olaf Scholz

As AI continues to reshape industries, France and the UAE’s collaboration marks a significant step toward advancing AI infrastructure while emphasizing sustainability and global cooperation.