UAE rethinks 5-gigawatt AI campus after Iranian strikes on US assets in Gulf region.

The United Arab Emirates is reconsidering its plan to build a 5-gigawatt AI data center in Abu Dhabi in partnership with U.S. technology giants, following Iranian drone and missile strikes targeting American military bases and critical infrastructure in the Persian Gulf, according to Reuters.

The UAE had planned the 5-GW UAE-US AI Campus as part of its ambition to become a regional and global leader in AI development and computing. The facility was designed to serve as a platform enabling U.S. hyperscalers to deliver latency-optimized services to nearly half of the global population living within 3,200 kilometers (2,000 miles) of the UAE.

However, escalating Iranian attacks have prompted UAE authorities to reconsider the original strategy. Rather than concentrating all 5 gigawatts in a single Abu Dhabi location, the UAE is now exploring a distributed network of data centers across the country, along with enhanced defenses against missile and drone strikes, according to Reuters sources including U.S. officials, Western diplomats, and industry executives.

"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," G42, which leads the initiative, said in a statement.

The threat is material. Earlier this year, Iranian drones struck three Amazon Web Services facilities in the region—two in the UAE and one in Bahrain—with direct hits.

The review reflects dual concerns: protecting critical infrastructure from Iranian attacks and reassuring investors. What was planned as one of the largest data center complexes outside the United States may now be redesigned to balance regional ambitions with operational security.