SoftBank Group ventures beyond its troubled domestic AI investments with a new data center project in the United Arab Emirates, marking the first international expansion of the ambitious Stargate initiative.
The Japanese conglomerate announced Thursday it will help develop a 200-megawatt facility in Abu Dhabi, scheduled to begin operations in 2026 as part of the broader Stargate UAE project. The facility represents the initial phase of what officials describe as a massive 5-gigawatt campus spanning 10 square miles.
Construction will be handled by G42, the UAE artificial intelligence firm that has attracted scrutiny over past ties to Chinese companies. Operations will be managed by OpenAI and Oracle, with Nvidia supplying advanced GB300 chip systems.
The venture extends SoftBank’s commitment to the original Stargate project, where the company pledged up to $500 billion alongside OpenAI, Oracle and others to build AI infrastructure across the United States. However, financing questions persist, with reports suggesting SoftBank could secure only 10% equity funding while relying heavily on debt.
The UAE agreement includes reciprocal investment commitments, with Emirates officials pledging to match their Abu Dhabi spending with equivalent investments in U.S. AI infrastructure. U.S. Commerce Department oversight will ensure the project meets security standards, reflecting ongoing Washington concerns about technology transfers in the region.
The timing coincides with broader Middle Eastern AI initiatives as energy-rich nations seek to diversify their economies beyond oil revenues.
