- The collaboration will deliver GPU-powered computing capabilities to enable AI-driven enterprise services across industries.
- The initiative aligns with the UAE’s national AI agenda and will support local AI model deployment and training.
What happened
Khazna Data Centers and Nvidia have announced a collaboration to build AI-ready digital infrastructure in the United Arab Emirates. The agreement focuses on enabling high-performance computing using Nvidia’s GPU platforms, including its advanced AI hardware and software stack. The infrastructure will be hosted in Khazna’s data centres, which operate as the largest colocation provider in the UAE.
This partnership aims to support organizations in training and deploying large AI models locally, rather than relying on offshore compute services. The companies plan to deliver scalable GPU clusters and software tools to enhance industry-specific AI innovation. Hassan Alnaqbi, CEO of Khazna, described the collaboration as key to enabling “sovereign AI capabilities” across critical sectors like healthcare, finance, and government services. The deal also fits within the UAE’s national AI strategy, which priorities building domestic capacity for advanced digital transformation.
Also read: Khazna expands UAE data centre footprint with new facilities
Also read:UAE Start-Up Gainz bets on bridge SME credit divide
Why it’s important
The Khazna–Nvidia partnership highlights growing efforts by Gulf nations to localise AI infrastructure, reduce dependence on foreign cloud providers, and gain strategic autonomy in digital innovation. With Nvidia currently dominating the market for AI training chips, including its H100 GPUs, partnerships like this give regional players a foothold in the competitive AI race.
Nvidia’s engagement in the Middle East also mirrors similar developments in Saudi Arabia, where the company is reportedly working with state-backed entities to build sovereign AI capabilities. In this context, Khazna’s expansion beyond colocation into value-added computing services signals a broader shift in the data centre business model. Rather than just offering space and power, providers are increasingly delivering full-stack AI platforms tailored to regional use cases.
While questions remain about long-term energy costs and sustainability in AI infrastructure, this move aligns with strategic national goals. The UAE is positioning itself as a regional AI hub, and local compute availability is essential for enterprises developing generative AI, computer vision, and language models.
