Big UAE Data Center Deal Faces Security Issues with US Technology Export Rules

Photo : Reuters

A big plan to build one of the world’s largest data center hubs in the United Arab Emirates (UAE) using American technology is still facing many security worries. This project, worth billions of dollars, is not yet finalized.

The data center will cover 10 square miles and is funded by G42, a tech company connected to the UAE government. G42 is leading the country’s work in artificial intelligence (AI). Big tech companies like Nvidia, OpenAI, Cisco, Oracle, and Japan’s SoftBank are working with G42 on the first stage of the project called Stargate UAE, which is planned to start in 2026.

But U.S. officials have not yet set clear security rules for sending advanced computer chips to the UAE or decided how to make sure the agreement is followed. This is why the deal is still not complete. When former President Trump visited Abu Dhabi, the UAE promised to match U.S. security rules, including ways to stop U.S. technology from being misused.

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There are ongoing concerns about the UAE’s close relationship with China. These worries have been there during both the Biden and Trump administrations. The main issue is whether the UAE can be trusted as a strong partner.

The report did not say if there is new information, but it said the old concerns have not been solved yet. During Trump’s first term, the UAE and other Gulf countries still used Huawei’s 5G technology, even though the U.S. was against it.

Some U.S. officials also doubt if the UAE can stop American technology from reaching countries that the U.S. sees as enemies.

Because of these security concerns, the deal to build the huge data center in the UAE is still in question.