Impact of UAE-US 5GW AI Campus in Abu Dhabi on the Real Estate Market and Wider Economy

On May 15, the United Arab Emirates and the United States signed an agreement to build the new 5GW UAE-US AI Campus in Abu Dhabi—poised to become the largest data center outside of the US. The project will act as a structural growth catalyst for Abu Dhabi, positively impacting its economy in the long term.

The AI data center was unveiled on Thursday at Qasr Al Watan in the presence of UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan and US President Donald Trump, who was on a state visit to the UAE.

The UAE-US AI Campus is planned to comprise 5 gigawatts of capacity of data centers, which will span 10 miles in Abu Dhabi. It will provide a regional platform where US hyperscalers (large-scale cloud service providers) can offer latency-friendly services to almost half of the global population living within 3,200 km of the UAE. Notably, the facility will leverage nuclear, solar, and gas power to minimize carbon emissions once completed and will house a science park to drive advancements in AI innovation.

G42, the UAE’s national AI champion, will build the new AI campus and operate it in partnership with several US companies. The collaborative project will begin with a 1 gigawatt data center, which will eventually expand to the 5GW data center spanning 10 miles.

The partnership between the UAE and US will build on a new government-to-government technology framework, the “US-UAE AI Acceleration Partnership,” to deepen collaboration between the two nations on AI and advanced technologies.

His Highness Sheikh Tahnoon bin Zayed Al Nahyan, Chairman of the Artificial Intelligence and Advanced Technology Council (AIATC) said the agreement was a testament to the UAE and U.S. 's ongoing collaboration in artificial intelligence.

“It is an expression of the UAE’s commitment to pioneering innovation and fostering global collaboration in artificial intelligence, strengthening the UAE’s position as a hub for cutting-edge research and sustainable development, delivering transformative benefits for humanity.”

Similarly, the U.S. Secretary of Commerce Howard W. Lutnick said the agreement represented a historic middle eastern partnership on AI between the two nations. “It promotes major investment in advanced semiconductors and data centers across the U.S. and the UAE. In the UAE, American companies will operate the data centers and offer American-managed cloud services throughout the region.”

Lutnick added that the agreement included strong security guarantees to prevent diversion of U.S. technology. He also added that it was a major milestone in achieving President Trump’s vision for U.S. AI dominance.

“By extending the world’s leading American tech stack to an important strategic partner in the region, this agreement is a major milestone in achieving President Trump’s vision for U.S. AI dominance.”

A Structural Growth Catalyst for Abu Dhabi

The 5GW UAE-US AI Campus will act as a structural growth catalyst for Abu Dhabi. It is expected to drive long-term economic transformation by embedding advanced technology infrastructure, attracting foreign direct investment (FDI), creating thousands of high-skilled jobs, stimulating real estate demand, and accelerating the shift toward a knowledge-based economy.

In detail, the AI data center is a strategic step toward tech sovereignty and economic diversification in Abu Dhabi. The project enhances the emirate’s reputation as a favorable destination for global tech giants and encourages further FDI. This is in line with the Abu Dhabi Economic Vision 2030, which seeks to promote a knowledge-based economy in order to lessen dependency on an oil- or hydrocarbon-based economy.

Furthermore, the existence of the data center in Abu Dhabi will result in thousands of direct jobs in the emirate. The data center will serve as a talent magnet and training ground for high-value professions in AI, engineering, cloud infrastructure, cybersecurity, data science, and more.

Finally, the resulting influx of international businesses and talent is expected to generate sustained demand for commercial, residential, and mixed-use real estate developments in Abu Dhabi. It is anticipated that the massive project will lead to an increase in demand for properties, particularly in the vicinity of the data center.

Explore Abu Dhabi Real Estate Options with Driven Properties

Driven Properties is pleased to announce the upcoming launch of our new branch in the emirate of Abu Dhabi, aiming to better serve our clients in the UAE’s capital. Stay tuned for updates and we will soon connect you with one of our dedicated Abu Dhabi real estate specialists.

For further insights and comprehensive real estate advisory services please contact Driven Properties at +971800374836.