Abu Dhabi: The UAE has inked a $200 billion deal with the US to build the world’s largest AI campus powered by 5 gigawatts, aiming to lead AI innovation by 2031 while addressing migrant labour issues and geopolitical tech rivalries involving China.
The United Arab Emirates (UAE) is making a substantial commitment to become a global leader in artificial intelligence, harnessing its vast oil wealth to fund an ambitious initiative. Recently, an impressive $200 billion deal was struck with the United States, aimed at establishing what is projected to be the world’s largest AI campus, designed to run on 5 gigawatts of power. This agreement marks a significant milestone in the UAE’s goal to dominate the AI landscape by 2031, as it seeks to attract global talent and facilitate technological innovation.
Abu Dhabi is at the forefront of this strategy, actively investing in open-source AI tools and pioneering educational programmes. To bolster these efforts, the country is implementing progressive visa policies aimed at luring international expertise. However, this rapid development trajectory has raised critical concerns regarding the treatment of migrant workers, prompting discussions about labour rights and equitable practices within the burgeoning tech sector.
The implications of this deal extend beyond mere technological progress. It represents a strategic attempt by former President Donald Trump to reassert U.S. influence in the AI arena, particularly in light of rising competition from China. Analysts express apprehension that such advancements might inadvertently bolster China’s technology trajectory as well. The partnership also seeks to underpin national security safeguards related to sensitive technologies, an area that has become increasingly contentious in U.S.-China relations.
In stark contrast, Italian Prime Minister Giorgia Meloni has voiced grave concerns over the European Union’s stringent environmental policies, arguing that they threaten the industrial viability of Europe. At a joint press conference with German Chancellor Friedrich Merz, Meloni described the EU’s green transition as a potential catalyst for creating what she terms an “industrial desert.” She specifically called for a reevaluation of the EU’s electrification approach, particularly regarding the automotive industry, warning that the current strategy may lock Europe into foreign electric vehicle supply chains, thus undermining local manufacturing capabilities.
Meloni advocates for the incorporation of alternative fuels, including biofuels and hydrogen, into Europe’s energy mix and has urged the EU to adopt a life-cycle perspective on vehicle emissions, rather than focusing solely on tailpipe outputs. The European Parliament’s recent decision to relax some emissions targets until 2027 reflects an awareness of the need for flexibility in the transition to greener energy as nations seek to balance environmental goals with economic realities.
Amplifying the call for corporate accountability in environmental matters, a report from the Union of Concerned Scientists has surfaced, highlighting a troubling legacy within the fossil fuel industry. This investigation has uncovered that major companies, such as ExxonMobil and Shell, actively misled the public regarding climate change, funding campaigns of disinformation while lobbying against regulatory measures. The report’s findings could play a significant role in legal battles against these companies, emphasising the importance of transparency in corporate environmental claims.
In Australia, EnergyAustralia has withdrawn its controversial carbon offset programme following a lawsuit alleging greenwashing. The company apologised to over 400,000 customers, acknowledging the inadequacy of its carbon offsets in mitigating the environmental damage resulting from fossil fuel consumption. This case could set a precedent for stricter standards regarding corporate environmental claims, underpinning the importance of accurate representations in the race for sustainability.
As the UAE races forward in its AI initiatives, and European leaders grapple with industrial challenges stemming from green policies, the interplay of technological advancement and environmental sustainability remains a focal point in global discourse. The landscape is dynamically shifting, with businesses navigating complex regulations and public expectations in their pursuit of a greener, more technologically advanced future.
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Source: Noah Wire Services
- https://impakter.com/esg-news-trump-uae-middle-east-ai-energy-deals/ – Please view link – unable to able to access data
- https://www.reuters.com/sustainability/climate-energy/italys-meloni-warns-eu-green-policies-risk-industrial-desertification-2025-05-17/ – Italian Prime Minister Giorgia Meloni has cautioned that inflexible green policies from the European Union could lead to the ‘desertification’ of Europe’s industrial sector. Following discussions with German Chancellor Friedrich Merz, Meloni emphasized the risks posed by a strict focus on electrification, especially in the automotive industry, arguing it could erode the continent’s manufacturing strength and increase dependency on non-European electric vehicle supply chains. She advocated for broader use of alternative fuels like biofuels and hydrogen and called for a more balanced ecological transition that supports economic and social stability. Meloni criticized the EU’s past regulatory framework as overly rigid, harming key sectors. She encouraged the European Commission to revise central aspects of the Green Deal, including how vehicle emissions are calculated—advocating for a life-cycle approach rather than focusing solely on tailpipe emissions. Recently, the European Parliament agreed to relax some emissions targets, allowing automakers more flexibility until 2027. Meloni also stressed cooperation between Italy and Germany to boost European competitiveness, particularly in automotive manufacturing.
- https://www.reuters.com/world/china/uae-set-deepen-ai-links-with-united-states-after-past-curbs-over-china-2025-05-15/ – The United Arab Emirates (UAE) is expected to secure a pivotal deal granting it expanded access to advanced artificial intelligence (AI) chips from the United States, marking a significant shift after previous restrictions linked to concerns over China. The agreement, anticipated during President Donald Trump’s visit to Abu Dhabi, would represent a strategic win for the UAE, which has sought to develop its AI sector while maintaining relations with both the U.S. and China. Under President Joe Biden, the UAE faced limitations due to its ties with China, but the Trump administration is now easing export controls, moving to foster deeper technological partnerships with allies. The deal includes mutual commitments to safeguard technology, especially in areas linked to computing, cloud services, and chip supply chains. U.S. companies, including Nvidia, stand to benefit from the new framework, while UAE entities such as G42 and MGX have increased their U.S. AI investments, including in OpenAI and xAI. Despite ongoing Chinese involvement in the UAE and past incidents of illicit chip transfers, the new U.S. approach favors engagement over restriction, potentially making the Gulf region a key player in the global AI race.
- https://www.reuters.com/business/aerospace-defense/beyond-headlines-explaining-trumps-gulf-trillions-2025-05-16/ – During U.S. President Donald Trump’s Gulf tour, the White House claimed over $2 trillion in deals were secured to benefit the U.S. economy. However, Reuters’ analysis found the actual value of concrete agreements to be closer to $730 billion, with many deals being non-binding memorandums of understanding (MoUs). Major components included Boeing jetliner orders, defense contracts with Saudi Arabia and Qatar, and investment pledges, such as Qatar’s $500 billion U.S. investment over ten years. Financial experts caution that many deals were exaggerated for political gain, with some previously announced agreements included in the totals. Others may never materialize. Despite skepticism about the headline figures, some U.S. companies experienced a market boost, and tangible deals like Qatar Airways’ $96 billion Boeing order were confirmed. Beyond economic figures, the tour yielded strategic wins for Gulf countries, including U.S. support for Saudi Arabia’s civil nuclear ambitions, UAE’s semiconductor goals, and a security assurance to Qatar. Overall, analysts see the tour as a symbolic step forward in U.S.-Gulf relations amid broader geopolitical tensions.
- https://www.lawfaremedia.org/article/the-uae-s-trump-era-ai-strategy – The United Arab Emirates (UAE) is leveraging its oil wealth to fuel a major push into artificial intelligence (AI), aiming to become a global leader by 2031. A $200 billion deal was sealed with the U.S. last week to bring the world’s largest AI campus, with 5 gigawatts of power, to the UAE. Abu Dhabi is leading with major investments, open-source AI tools, and education programs. The country is also attracting international talent through visa programs and training initiatives, but concerns remain about the treatment of migrant workers and equitable labor practices. With this deal, Trump aims to bolster U.S. influence in AI and counter China’s tech expansion, but officials fear the deals could put national security at risk and may ultimately benefit China. Companies and investors looking to stay competitive as AI reshapes global industries can stay informed using ESG solutions.
- https://www.eenews.net/articles/italys-meloni-slams-ideological-madness-of-eu-ban-on-gas-and-diesel-cars/ – Italian Prime Minister Giorgia Meloni has criticized the European Union’s ban on the sale of new gas or diesel cars by 2035, calling it ‘ideological madness.’ She stated that while reducing polluting emissions is important, it should not come at the expense of economic and social sustainability. Meloni emphasized the need to defend and promote European production and safeguard jobs, suggesting that the ban could lead to new strategic dependencies, such as reliance on China’s electric vehicles. She expressed the Italian government’s intention to work to ‘correct’ this measure.
- https://www.lawfaremedia.org/article/the-uae-s-trump-era-ai-strategy – The United Arab Emirates (UAE) is leveraging its oil wealth to fuel a major push into artificial intelligence (AI), aiming to become a global leader by 2031. A $200 billion deal was sealed with the U.S. last week to bring the world’s largest AI campus, with 5 gigawatts of power, to the UAE. Abu Dhabi is leading with major investments, open-source AI tools, and education programs. The country is also attracting international talent through visa programs and training initiatives, but concerns remain about the treatment of migrant workers and equitable labor practices. With this deal, Trump aims to bolster U.S. influence in AI and counter China’s tech expansion, but officials fear the deals could put national security at risk and may ultimately benefit China. Companies and investors looking to stay competitive as AI reshapes global industries can stay informed using ESG solutions.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative includes recent developments, such as the UAE’s AI initiatives and European debates on environmental policies, which are current and relevant. However, the involvement of former President Donald Trump might suggest some outdated context, as his role and influence have evolved since his presidency.
Quotes check
Score:
6
Notes:
There are no direct quotes in the narrative that can be verified against earlier sources. This makes it difficult to assess if the quotes are original or have been used previously.
Source reliability
Score:
7
Notes:
The narrative originates from Impakter, a publication focusing on sustainability and global affairs, which is less widely recognized compared to major news outlets like Reuters or BBC. While it provides well-researched content, its reliability may vary compared to more established sources.
Plausability check
Score:
9
Notes:
The claims about the UAE’s AI ambitions and the European Union’s environmental policies are plausible, given recent trends in technology and environmental regulation. The narrative reflects current global discussions and challenges in these areas.
Overall assessment
Verdict (FAIL, OPEN, PASS): OPEN
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative appears mostly current and plausible, aligning with recent global trends in AI and environmental policy. However, the reliability of the source is somewhat uncertain due to its lesser recognition compared to major news outlets. The lack of direct quotes and the reference to Donald Trump’s role may suggest some outdated elements. Overall, the narrative is well-researched but requires further verification for absolute accuracy.
