Brief

September 2025

UAE Rises as #2 AI Superpower behind the US and Broadens Global Innovation Footprint

The UAE is now the world’s #2 AI powerhouse behind the US, according to TRG Datacenters. Additionally, American investments are helping drive record grow that Masdar, Demand AI has launched its regional HQ in Dubai and UAE-based Space42 is mapping Africa in partnership with Microsoft and Esri.

1 big thing: UAE Emerges as World’s #2 AI Superpower After the US

The UAE is now ranked as the world’s second-largest AI superpower, behind only the United States, according to Texas-based TRG Datacenters. The rankings measured compute power, government AI readiness and AI company ecosystems. The UAE boasts 23.1 million H100-equivalent compute units which is more than three times the compute of the next closest competitor.

This milestone reflects the UAE’s massive infrastructure investments, including Stargate UAE and strategic partnerships with US leaders like Nvidia, Microsoft and OpenAI.

Why it matters

  • The UAE-US AI Acceleration Partnership sets the twonations apart from other AI powers, ensuring joint leadership.
  • Advanced compute and data center infrastructure make the UAE a launchpad for US hyperscalers expanding into the Global South.
  • With hundreds of billions in future investment, the partnership will fuel job creation, innovation and shared growth across both economies.

Additional stories shaping the UAE–US economic partnership:

Masdar’s portfolio grew 62% in 2024, fueled by major US energy investments, including a 50% stake in Terra-Gen.

With 30 power sites in California and Texas, the expansion is boosting local jobs and trade. California alone supported 16,000 jobs through UAE trade in 2024, with investments spanning energy, aerospace and AI.

The UAE's strategic investments in AI and technology are not only enhancing its global standing but also fostering significant economic partnerships with the US. These collaborations are paving the way for innovative projects and job creation across various sectors.‍

Colorado-based Demand AI opened a new regional HQ in Dubai, leveraging the UAE as a launchpad for Middle East growth.

The office will deliver localized AI-powered demand generation solutions and reflects why global tech firms are increasingly choosing the UAE as a hub for expansion.

Abu Dhabi’s Space42, alongside Microsoft and Esri, launched the 5-year Map Africa Initiative to build the most comprehensive AI-powered maps of Africa.

Covering all 54 countries and 1.4 billion people, the project will support economic development by providing precise, accessible geospatial data for governments and businesses.