Just a few days ahead of the much anticipated Artificial Intelligence Action Summit in Paris, France has revealed a major financial initiative. French President, Emmanuel Macron, and UAE President, Mohamed bin Zayed Al Nahyan, have struck a deal to invest between €30 billion and €50 billion in AI infrastructure.
At the heart of this initiative is a massive AI data center and campus, which will be based in France.
A Monumental Investment in AI Infrastructure
This major project will lead to the creation of a 1GW-capacity data center, a critical upgrade that strengthens France’s position as a leading AI hub in Europe. The deal not only highlights France’s determination to attract top-tier AI investments but also reinforces its commitment to forging stronger international partnerships with the UAE. With the AI industry growing rapidly, this investment positions France as a key player in the global AI landscape.
Why France?
France has been laying the groundwork for AI expansion for some time now. On Thursday, France’s digital and AI minister, Clara Chappaz, confirmed that the country had pinpointed 35 potential sites for new data centers. These locations come with fast-track administrative approvals, making it easier and quicker to set up AI infrastructure.
One of France’s key advantages is its energy mix. With around 65% of its electricity generated from nuclear power and 25% from renewable sources, the country is in a strong position to support energy-intensive AI operations while maintaining a lower carbon footprint. This makes France an attractive destination for AI companies looking for sustainable and reliable energy sources to power their data centers.
Backed by a Consortium of French and Emirati Investors
The data center initiative will be financed by a consortium of French and Emirati investors. A key player in this project is MGX, an Emirati investment firm with a strong focus on AI.
MGX is no stranger to AI investments. It was one of the initial backers of Stargate, a high-profile AI project led by SoftBank and OpenAI. Given MGX’s expertise and connections, its role in this French AI project is expected to attract additional investors and tech companies.
France Eyes Leadership Position in The AI Race
Speaking at a tech meetup hosted by Balderton and Photoroom, Minister Clara Chappaz highlighted the growing competition in AI. She referenced the Stargate project and China’s emerging AI startup DeepSeek as key indicators of the fast-moving industry.
“The scale of these developments proves that we’re just getting started,” Chappaz remarked. “This technology is our opportunity to close the gap.”
With this investment, France aims to secure its position as a dominant force in AI while leveraging its energy-efficient infrastructure.
High-Profile Leaders Set to Convene in Paris for AI Summit
The timing of this investment announcement couldn’t be better. The Artificial Intelligence Action Summit is just around the corner, bringing together world leaders, policymakers, and top figures from the tech industry. Attendees will meet in Paris to discuss the future of AI, unveil new projects, and establish global partnerships. Some of the most notable attendees include:
- U.S. Vice President J.D. Vance
- China’s Vice Premier Zhang Guoqing
- European Commission President Ursula von der Leyen
- German Chancellor Olaf Scholz
A Pivotal Moment for AI in Europe
This UAE-France partnership is a sign of something bubbling below the surface. Billions are already committed and France is rapidly positioning itself as a dominant AI hub. More announcements are likely to follow, reinforcing France’s status as a powerhouse in artificial intelligence.
