Stargate UAE prepares a large AI data centre in Abu Dhabi

What happened

In May 2025 Stargate UAE was announced, a large AI data centre complex planned for Abu Dhabi, with a first phase expected in 2026. The announcement involved companies such as G42, OpenAI, Oracle, Nvidia, Cisco and SoftBank.

The project sits within a wider race to expand AI computing capacity across regions worldwide, with large-scale investment in infrastructure, energy and connectivity.

What it means for a mid-sized business

More cloud and AI regions available worldwide translate, over the medium term, into more provider and location options for European businesses. But they also add complexity when deciding where to process or store each piece of data.

For a business in Spain or Catalonia, the announcement changes nothing immediately, but it is a reminder that choosing a cloud region should rest on its own criteria: applicable regulation, required latency and data sensitivity, not just the best-known provider.

What to review

Before deciding where to host workloads or AI services:

• Which data protection rules apply to each type of information and which region meets those requirements.
• What real latency each service needs and whether a more distant region would penalise it.
• What service levels and support the provider offers in each region.
• What data egress costs a future change of provider or region would involve.

Frequently Asked Questions

Does Stargate UAE affect European businesses today?

Not directly. It is an infrastructure project in the Middle East; its relevance to Europe is indirect, as part of the global expansion of AI capacity.

Should an SME consider using data centres in other regions?

It depends on the type of data and applicable regulation. For sensitive data, location within the EU is usually the priority criterion.

How does this relate to a local provider's own data centre?

There is no direct relation; the scales and goals differ. The choice between local infrastructure and hyperscale depends on each company's needs.