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UAE Rethinks 5-Gigawatt AI Campus After Iran Targets US Assets in Gulf

Oilprice • September 11, 2026

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The United Arab Emirates (UAE) is considering significant changes to its plans to build a massive 5-gigawatt AI data center in Abu Dhabi in partnership with U.S. tech giants, after Iran started targeting American air bases and U.S.-linked critical infrastructure in the Persian Gulf, multiple sources have told Reuters .

The UAE, which aims to become not only a regional but also a global leader in AI development and computing, last year planned to build the 5-GW UAE-US AI Campus in Abu Dhabi.

The sprawling campus was planned to include 5 GW of capacity for AI data centers in Abu Dhabi, providing a regional platform from which U.S. hyperscalers would be able to offer latency-friendly services to nearly half of the global population living within 3,200 km (2,000 miles) of the UAE.

However, the Iran war and the frequent Iranian missile and drone launches targeting U.S. assets in America’s allies in the Gulf have now prompted the UAE’s authorities to consider spreading the campus into a network of data centers across the UAE and measures to better protect critical facilities from missile and drone attacks, according to Reuters’ anonymous sources, including a U.S. official, a Western diplomat, and industry executives.

G42, which leads the project, told Reuters in response to queries changes to the original plan that “The project’s specifics are subject to continuous review in line with the security, resilience and operational standards expected of critical infrastructure at this scale.”

Earlier this year, Iranian drones damaged three Amazon Web Services (AWS) facilities in the region, with direct hits on two UAE facilities and one hit on a facility in Bahrain.

Following several such attacks and attempts at attacks in the Persian Gulf, the UAE began reviewing the plans for the massive AI data campus, according to Reuters’ sources. The campus was planned to be one of the biggest such facilities outside the United States, but keeping critical infrastructure out of harm’s way and reassuring investors could alter the plans.

The full story

This article is one source in a clustered incident — the cluster page carries the summary, timeline and every other outlet covering it.

UAE AI Campus Plans Impacted by Iran's Military Actions The United Arab Emirates (UAE) is reconsidering its plans for a 5-gigawatt AI data center in Abu Dhabi due to heightened tensions following Iran's targeting of U.S. assets in the Gulf. This strategic shift comes amidst escalating conflict in the region, which has seen a significant decline in shipping traffic through the Strait of Hormuz and rising oil prices. The UAE's decision reflects concerns over security and stability in the Gulf, which could affect energy supply chains and international investments. The situation is fluid, with ongoing military actions influencing regional energy policies and infrastructure projects. 6 sources 60

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