President Donald Trump has signed off on a major agreement with the United Arab Emirates to build the largest artificial intelligence campus outside the United States. The deal lifts earlier restrictions that had blocked the Gulf nation’s access to advanced U.S. chips over concerns they could be diverted to China.
Finalized during Trump’s visit to the Middle East, the agreement represents a diplomatic and technological breakthrough. It signals renewed confidence by the U.S. that key allies such as the UAE can be trusted to handle sensitive AI hardware—provided strict oversight and American involvement are in place.
Newsweek has reached to the U.S. Commerce Department and UAE’s foreign ministry for comment.
Why It Matters
The agreement marks a sharp turn from the Biden-era policy, which limited chip exports to nations seen as too close to China. The Trump administration has taken a more flexible approach, emphasizing containment of Chinese influence while expanding tech collaboration with partners in the Gulf. By allowing the UAE access to top-tier AI technology, Washington aims to outpace Beijing in shaping the global AI landscape. The new deal seeks to embed U.S. standards in regional infrastructure without forcing nations to choose between superpowers outright.
What to Know
At the center of the pact is a 10-square-mile AI campus in Abu Dhabi, backed by 5 gigawatts of power—enough to support around 2.5 million of Nvidia’s flagship B200 chips, according to estimates by Rand Corporation analyst Lennart Heim. The U.S. Commerce Department called the initiative the largest AI infrastructure project to date.
To put the new 5GW AI campus in Abu Dhabi (UAE) into perspective. It would support up to 2.5 million NVIDIA B200s.That’s bigger than all other major AI infrastructure announcements we’ve seen so far. pic.twitter.com/Rg272brdPq
— Lennart Heim (@ohlennart) May 15, 2025
UAE state-linked firm G42 will construct the site, but American companies will operate it and provide U.S.-managed cloud services across the region. The White House said the UAE has committed to building or financing equivalent data centers in the U.S., while also aligning its national security policies with American standards.
Will China Be Kept Out?
Despite recent reforms, concerns remain over China’s influence in the UAE. G42 has removed Chinese hardware and shed investments under U.S. pressure, yet firms such as Huawei and Alibaba Cloud still maintain a presence. U.S. officials have also flagged the risks of technology leakage through infrastructure still using Chinese components or software.
Trump officials say the new agreement includes safeguards to prevent such diversions. Trump’s AI czar David Sacks said in Riyadh this week that Biden-era controls were “never intended to capture friends, allies, strategic partners.”
What People Are Saying
Rand Corporation analyst Lennart Heim wrote on X: “That’s bigger than all other major AI infrastructure announcements we’ve seen so far. That is enough power to support 2.5 million of Nvidia’s top-line B200 chips.”
A White House statement read: “Commitments by the UAE to further align their national security regulations with the United States, including strong protections to prevent the diversion of U.S.-origin technology.”
What Happens Next
The AI campus is expected to begin operations later this year, with the UAE preparing to import up to 500,000 Nvidia chips annually as part of the agreement. The project signals a deepening U.S. presence in Middle East tech infrastructure and a possible new chapter in global AI competition.
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