Abu Dhabi’s MGX Fuels $40B AI Data Center Deal with Nvidia and Microsoft
Abu Dhabi’s MGX has quickly become a major force in the global AI boom. Backed by the UAE’s sovereign wealth fund, MGX is now funding large-scale infrastructure projects that power artificial intelligence growth.
This week, MGX joined Nvidia, Microsoft, BlackRock, and Elon Musk’s xAI to purchase Aligned Data Centers for $40 billion. The company designs and runs massive facilities across North and South America. This marks the largest data center deal in history.
MGX was launched in 2024 through a partnership between G42 and Mubadala Investment Company. Its chairman, Sheikh Tahnoon bin Zayed Al Nahyan, also serves as the UAE’s national security advisor.
Expanding Global AI Investments
In earlier ventures, MGX joined Oracle and Silver Lake in a $100 billion AI Infrastructure Partnership, alongside Microsoft and BlackRock. The group aims to expand AI development primarily within the United States.
MGX also helped form Stargate, a $500 billion Trump-endorsed project with OpenAI, Oracle, and SoftBank, focused on U.S. AI infrastructure.
However, MGX’s rapid rise has sparked political debate. U.S. lawmakers, including Senator Elizabeth Warren, have questioned the firm’s growing influence and its ties to former President Donald Trump.
Industry analysts say American tech giants may rely on Middle Eastern funding to compete with China’s AI ambitions.
As venture capitalist Bradley Tusk notes, MGX offers “welcome capital in a tough fundraising climate,” though political risks remain.
With global AI expansion accelerating, MGX’s deep pockets are helping shape the future of digital infrastructure — and possibly the next phase of U.S.-UAE tech relations.
