EXCLUSIVE: UAE revises AI data center plan after Iranian attacks, sources say

The United Arab Emirates is revising its plans for a massive artificial intelligence data center campus following a series of Iranian attacks. According to an exclusive report from Reuters, sources indicate that the UAE is modifying its strategy for the facility, which was designed as a 5-gigawatt campus. Reports from Inshorts further specify that the UAE is splitting the original plan for this large data center into smaller fragments. This shift comes as Iran targets technological infrastructure in the region. Construction for the first phase of this ambitious project had previously begun in 2025, marking a significant investment in the nation's digital capabilities. Multiple outlets are tracking the strategic pivot, with Reuters leading the exclusive reporting on the revisions.

Seeking Alpha describes the initiative as the "Stargate" data center project, noting that modifications are occurring in the wake of the Iran war. OilPrice.com emphasizes that the rethinking of the 5-gigawatt campus follows Iranian actions targeting US assets within the Gulf region. While these reports focus on the specific risks to the Stargate project, The Economist provides broader regional context, noting that the overall data-center boom across the Gulf has not been halted by the ongoing state of war. This development is critical because it highlights the intersection of geopolitical conflict and the global race for AI supremacy. The scale of the project, cited as 5 gigawatts by both OilPrice.com and Seeking Alpha, underscores the immense energy and infrastructure requirements of modern AI. The decision to fragment the data center suggests a move toward decentralization to mitigate the risk of a single point of failure during military conflict.

By splitting the campus into smaller pieces, the UAE seeks to protect its tech infrastructure from targeted strikes while continuing its pursuit of AI leadership. Future developments will likely center on the specific implementation of these fragmented plans and the timeline for the subsequent phases of construction. While the first phase began in 2025, coverage does not yet specify the updated completion dates for the revised fragments. Observers will be watching for further updates from Reuters and other sources regarding how the UAE balances its 5-GW ambition with the security requirements imposed by Iranian aggression. The continuing trend of the Gulf's data-center boom, as noted by The Economist, suggests that despite the revisions to the Stargate project, the region remains committed to AI expansion.