Italy and the United Arab Emirates announced a landmark deal on Friday to develop what aims to be Europe's largest artificial intelligence computing infrastructure. According to Reuters, Abu Dhabi-based tech firm G42 has partnered with Italian AI startup iGenius to build the major AI supercomputer in Italy, with G42 serving as the main financier for the initial phase.

The deal falls under a broader framework established during a bilateral summit in February, where the UAE pledged to invest $40 billion in Italy, as stated by Italian Prime Minister Giorgia Meloni at that time. The project, named Colosseum, will be developed with $1 billion over five years using Nvidia technology in southern Italy.

Project Details and Technical Specifications

The AI data center project, located likely in the southeastern Apulia region of Italy, represents a significant technological advancement for European AI capabilities. Middle East Online reports that Italian Industry Minister Adolfo Urso described the partnership as building "the largest AI computing infrastructure in Europe."

The infrastructure will utilize thousands of NVIDIA Blackwell GPUs in a high-performance computing cluster. Previous announcements of the Colosseum project from December 2024 indicated it would house approximately 80 of Nvidia's most powerful GB200 NVL72 servers, each containing 72 Blackwell chips, potentially delivering 115 exaflops of computational performance.

"This agreement, which will lead to the creation of a supercomputer in our country, marks a decisive step in relations with the UAE," said Urso at an event in Milan. He added that there were "strong chances" the AI hub would be developed in Apulia due to the region's surplus of renewable energy capacity.

Strategic Importance for Both Nations

For Italy, this partnership advances its position in the global AI race and enhances its technological sovereignty. The European Union has been pushing to develop its own AI infrastructure to reduce dependence on U.S. and Chinese technology. According to Groupe d'études géopolitiques, without massive, coordinated investment in infrastructure, Europe risks becoming technologically dependent on other global powers.

For the UAE, the investment aligns with its broader strategy to diversify from oil and become a global AI leader. The National News reports that the UAE has been aggressively investing in AI projects globally, establishing partnerships with major technology companies and launching initiatives to boost its AI capabilities.

The project will be led and operated by Core42, a G42 company specializing in sovereign cloud, AI infrastructure, and digital services. This collaboration aims to provide secure, scalable, and high-performance infrastructure for European AI development.

Competitive Global Landscape

This partnership emerges amid intensifying global competition in AI infrastructure. IoT Magazine notes that countries are making substantial investments to establish themselves as leaders in AI technology. The United States recently launched the Stargate initiative with a $100 billion private investment for AI infrastructure, while China continues its massive investment in computing power.

Global AI infrastructure market size is expected to reach $223.85 billion by 2029, growing at a compound annual rate of 31.9%, according to market research firms. This growth is driven by surging data traffic and increasing computing needs for advanced AI applications.

The UAE has established itself as a key player in this landscape, with major investments both domestically and internationally. CSIS highlights that the UAE is "pouring tens of billions into AI infrastructure and innovation investments abroad," using its energy wealth to secure an advantageous position in the AI economy of tomorrow.

Economic and Regulatory Implications

The collaboration between G42 and iGenius comes as regulatory approaches to AI diverge globally. European regulations, such as the EU AI Act, place stronger emphasis on safety, privacy, and ethical considerations, while the U.S. has favored a more market-driven approach.

US Vice President JD Vance recently cautioned that "excessive regulation of the AI sector could kill a transformative industry," as reported by Reuters. This regulatory divergence may impact how AI infrastructure is deployed and utilized across different regions.

For Italy, the economic benefits of this deal extend beyond the immediate investment. The development of advanced AI infrastructure could attract additional technology companies, create high-skilled jobs, and position Italy as a hub for AI innovation in Europe.

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