France and the United Arab Emirates (UAE) have forged a significant agreement for the development of an artificial intelligence (AI) data center in France, with investments projected between $30 billion and $50 billion. This ambitious project, which includes the construction of a 1-gigawatt facility, aims to bolster AI infrastructure and enhance collaboration between the two nations.
The announcement was made following a high-profile meeting between French President Emmanuel Macron and UAE President Sheikh Mohamed bin Zayed Al Nahyan, coinciding with the AI Action Summit in Paris. This summit, which brings together representatives from around 100 countries, seeks to explore the strategic applications and potential of AI. France intends to leverage this event to establish itself firmly in the global AI arena, competing with established leaders like the U.S. and China.
France’s Digital and AI Minister, Clara Chappaz, indicated that the country has pinpointed 35 potential locations for the establishment of new data centers and has expedited administrative processes to facilitate their construction. The UAE’s investment is anticipated to capitalize on this framework, promoting efficient execution of the AI-focused data center. France’s energy profile, with 65% derived from nuclear and 25% from renewables, positions it as a strategic site for sustainable AI development amidst the growing demand for energy-intensive data centers.
The AI data center initiative will be supported by a coalition of French and Emirati investors. Notably, the UAE-based investment firm MGX, which specializes in artificial intelligence, is set to be a key player in the project. MGX has already been involved in major AI initiatives, including Stargate, a large-scale AI collaboration led by SoftBank and OpenAI. At a recent tech meetup, Minister Chappaz expressed confidence in France and Europe’s capacity to compete in the global AI market, highlighting the UAE-backed project as a vital move toward narrowing the gap with major AI powers.
The forthcoming AI Action Summit on February 10-11 will serve as a platform for France to showcase its advancing AI aspirations. The country is proactively seeking international investments to build AI infrastructure, emphasizing the need to minimize the environmental impact associated with data-heavy AI operations. The joint statement from both nations reaffirms their dedication to forging a strategic AI partnership, paving the way for additional collaborations and investments to foster the AI value chain. This agreement not only strengthens diplomatic relations between France and the UAE but also highlights Europe’s intention to build a more substantial presence within the dynamic AI sector.
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