UAE + France collaborate on data center: The UAE and France have inked a framework contract to develop a 1 GW artificial intelligence (AI) data center in investments between USD 30 bn to USD 50 bn, Reuters reported on Thursday. UAE President Sheikh Mohamed bin Zayed al Nahyan inked the agreement in Paris, where he is set to attend the AI Action Summit, which starts today and runs through tomorrow, 11 February.

What we know: The two countries want to create a strategic AI partnership, with plans to pour investments in data centers, chips offtake, and talent development, state news agency Wam reported on Friday, without disclosing further details on the planned data center or the other investments. Around 35 sites have already been located to host AI data centers. Information on the first investment will be disclosed at the Choose France summit later this year.

But some details are out already: Abu Dhabi’s AI fund MGX will provide initial investments for the planned USD 30-50 bn data center push, with additional funding coming from a consortium of French and Emirati firms, Bloomberg reports, citing unnamed officials from the French President’s office.

Not the first European country to tap into UAE’s data centers: Edgnex Data Centers, a joint venture (JV) between Damac and PPC Group, launched Data In Scale, a JV focusing on the development of a data center in Sparta, Greece. The UAE inked an MoU with Greece to develop 500 MW data centers back in February 2024.

REFRESHER- The UAE is big on data center investments: Dubai Deputy Ruler Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum inaugurated the second phase of the Green Data Center at the Mohammed bin Rashid Al Maktoum Solar Park last month. UAE’s Beeah Group, Khazna Data Center and the Sharjah Communication Technologies Authority also plan to set up the largest Tier III data center at the Sharjah Freezone for Communication Technologies in Kalba, among other data centers across the emirate. Damac Group said last October it is planning to invest some USD 1 bn in data centers in Thailand through its unit Edgnex.

IN OTHER RELATED NEWS- Abu Dhabi-backed Cerebras powers France’s Mistral’s AI assistant: Abu Dhabi-backed Cerebras is providing the computing power behind France's open-source AI maker Mistral in a new partnership that, according to Mistral, has set a speed record in AI response times, Reuters reports. Mistral claims its latest app, Le Chat, can generate replies at 1k words per second, making it the fastest AI assistant — surpassing OpenAI and DeepSeek. The AI chipmaker made answer speed a key priority as competition intensifies, with rivals closing in on OpenAI's models, CEO Andrew Feldman told Reuters.

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