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We help you gain critical insights and make more informed decisions across your business priorities.Dark Reading Resource LibraryBlack Hat NewsOmdia CybersecurityAdvertiseNewsletter Sign-UpNewsletter Sign-UpCybersecurity TopicsRelated TopicsApplication SecurityCybersecurity CareersCloud SecurityCyber RiskCyberattacks & Data BreachesCybersecurity AnalyticsCybersecurity OperationsData PrivacyEndpoint SecurityICS/OT SecurityIdentity & Access Mgmt SecurityInsider ThreatsIoTMobile SecurityPerimeterPhysical SecurityRemote WorkforceThreat IntelligenceVulnerabilities & ThreatsRecent in Cybersecurity TopicsCybersecurity OperationsAI Security Agents Get Persona MakeoversAI Security Agents Get Persona MakeoversbyRobert Lemos, Contributing WriterNov 7, 20255 Min ReadVulnerabilities & ThreatsOllama, Nvidia Flaws Put AI Infrastructure at RiskOllama, Nvidia Flaws Put AI Infrastructure at RiskbyAlexander CulafiNov 7, 20253 Min ReadWorld Related TopicsDR GlobalMiddle East & AfricaAsia PacificRecent in World See AllThreat IntelligenceSilver Fox APT Blurs the Line Between Espionage & CybercrimeSilver Fox APT Blurs the Line Between Espionage & CybercrimebyNate Nelson, Contributing WriterAug 8, 20253 Min ReadThreat IntelligenceIran-Israel War Triggers a Maelstrom in CyberspaceIran-Israel War Triggers a Maelstrom in CyberspacebyNate Nelson, Contributing WriterJun 19, 20255 Min ReadThe EdgeDR TechnologyEventsRelated TopicsUpcoming EventsPodcastsWebinarsSEE ALLResourcesRelated TopicsResource LibraryNewslettersPodcastsReportsVideosWebinarsWhite Papers Partner PerspectivesDark Reading Resource LibraryCyber RiskCybersecurity OperationsThreat IntelligenceData PrivacyNewsMicrosoft Backs Massive AI Push in UAE, Raising Security ConcernsIn partnership with Emirates tech company G42, Microsoft is building the first stage of a 5-gigawatt US-UAE AI campus using Nvidia GPUs.Robert Lemos, Contributing WriterNovember 7, 20255 Min ReadMicrosoft Dubai officeSource: tashmetova808 via ShutterstockWhile American policymakers have debated how to safely develop AI technologies while keeping up with the massive efforts of US rivals, large technology firms are pushing to securely build out AI capabilities in data centers around the globe.In a first big win under the Trump administration, Microsoft gained permission from the US to ship the latest Nvidia AI chips to the United Arab Emirates, highlighting the importance of that country as a gateway to the Middle East. Microsoft shipped the equivalent of 21,500 NVidia A100 graphics processing units (GPUs) — a basic building block of today's performant AI data centers — during Joe Biden's tenure. The Trump administration recently granted the company a license to export an additional 60,400 equivalent units.Security is a key part of the equation, especially because the United Arab Emirates is considered a "complex" partner for the US, says Janet Egan, a senior fellow and deputy director in the technology and national security program at the Center for a New American Security (CNAS)."They have the deep pockets and ambition to focus on building out AI at a massively ambitious scale, yet they are a complex partner because they are an authoritarian regime that is not democratic and still have close partnerships with China as well, including on security issues," she says. "The US is looking to bring [the UAE] closer into the fold of the US orbit and geo-strategic partnerships, but at the same time, has to be very careful about not equipping another nation that might then shift or pivot its interests away from US interests."Related:AI Agents Are Going Rogue: Here's How to Rein Them InMicrosoft is not alone in deepening its relationship with the UAE. In May, five companies — Cisco, Nvidia, OpenAI, Oracle, and SoftBank Group — partnered with Emirates' AI and cloud services company G42 to build Stargate UAE, a 1 gigawatt compute cluster as part of a planned 5 gigawatt US-UAE AI campus. One gigawatt — the amount of power generated by a nuclear reactor — is enough to power an AI compute center hosting 1 million GPUs, according to reported analyst estimates. The Stargate UAE project aims to have its first phase — a 200 megawatt facility — up and running next year.Microsoft will have invested more than $7.3 billion in the UAE between 2023 and the end of 2025, said Brad Smith, president of Microsoft, in a Nov. 3 blog post reviewing its UAE investments. He also highlighted Microsoft's partnership with G42 and its planned investment of $15.2 billion in the UAE by the end of 2029. "While the chips are powerful and the numbers are large, more important is their positive impact across the UAE," Smith said. "We're using these GPUs to provide access to advanced AI models from OpenAI, Anthropic, open-source providers, and Microsoft itself."Related:Government Approach to Disrupt Cyber Scams is 'Fragmented'Microsoft declined to be interviewed for this article.AI Security: Technology Collides With PoliticsThe Microsoft-UAE activities have faced criticism, but mainly from Republican lawmakers during the Biden administration. In May 2024, for example, two Republican lawmakers raised concerns about the initial phase of the deal, requesting that the White House provide details of the security measures and restrictions that would limit technology transfer to China.Deployment of sensitive technology and workloads to data and compute centers in other nations should raise significant security questions, says Sella Nevo, founding director and principal research at the Center on AI, Security, and Technology (CAST) at the global nonprofit policy think tank RAND Corp."It is a lot easier to perform malicious operations in, let's say, the Middle East than it is in the US," he says. "You might worry that an adversary could sabotage a critical system or install backdoors ... and there are many drivers of why that's easier."Related:Dark Reading Confidential: Cyber's Role in the Rapid Rise of Digital AuthoritarianismMany times in other nations, adversaries have greater freedom of operation, and the fear of retaliation is much lower than on US soil. In addition, adversaries in the Middle East have accumulated a great deal of cyberattack experience in recent years, Nevo says.The main concern, however, is whether China will be able to use deals between UAE and Microsoft — as well as the Stargate UAE coalition — to gain access to sensitive chip technology or AI compute workloads. China's technical capabilities will likely result in the production of about 200,000 advanced chips per year, which gives the US and its partners breathing room to establish their technologies, says Egan."China still creates fairly advanced chips, but it just cannot create them at the scale needed for its own AI transition, let alone to effectively export cutting edge AI to the world," she says. "I think that's where the US has bought itself an advantage in terms of it has an opportunity now to move ahead with its ability to produce at scale and then serve a lot of different areas of the world quickly before China is able to catch up and offer the same scale."Microsoft's Mideast Copilot Flood: A Bevy of Security RestrictionsThe UAE is an important ally in the region and the world's most aggressive adopter of AI technology; Microsoft's own "AI Diffusion Report" places the nation at the top of the list of widespread use of AI.Yet, security issues remain a worry. While the complete picture of US requirements for the UAE data centers have not been released, Microsoft's statement on its UAE investments contains some hints at the security measures in place. When Microsoft invested in the UAE's sovereign IT company, G42, the pair had to agree to a binding framework — the Intergovernmental Assurance Agreement (IGAA) — to meet best-practice requirements in cybersecurity, physical security, export controls, and Know Your Customer (KYC) practices.Under the Biden administration, the company did "substantial work ... to meet the strong cybersecurity, national security, and other technology conditions required by [the chip-export] licenses," Microsoft's Smith stated. The latest chip-export permissions under the current administration required even more stringent technology safeguards.About the AuthorRobert Lemos, Contributing WriterVeteran technology journalist of more than 20 years. Former research engineer. Written for more than two dozen publications, including CNET News.com, Dark Reading, MIT's Technology Review, Popular Science, and Wired News. Five awards for journalism, including Best Deadline Journalism (Online) in 2003 for coverage of the Blaster worm. Crunches numbers on various trends using Python and R. 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Microsoft’s strategic push into the United Arab Emirates, particularly its partnership with G42 to build a 5-gigawatt AI campus, has raised significant security concerns, prompting scrutiny from policymakers and experts alike. This ambitious undertaking, leveraging Nvidia GPUs, represents a substantial investment in AI infrastructure, but also introduces complex geopolitical and cybersecurity considerations.

The initial licensing of Nvidia AI chips to the UAE, granted under the Trump administration and subsequently expanded by the Biden administration, highlights the UAE’s position as a key gateway to the Middle East and a nation rapidly embracing AI technologies. However, this expansion has been met with caution, primarily due to concerns surrounding the UAE’s authoritarian regime and its close ties with China. Janet Egan, a senior fellow at the Center for a New American Security (CNAS), emphasized the dual nature of the UAE as a technologically ambitious yet potentially “complex” partner. The potential for technology transfer to China, alongside security implications related to data governance and access, drove much of the policy discussions.

The projected 5-gigawatt AI campus, estimated to require a staggering 1 million GPUs, represents a massive investment with an estimated $7.3 billion committed by Microsoft alone. This scale amplifies the security risks. The potential for misuse of advanced AI capabilities, combined with the UAE’s geopolitical landscape, has spurred debate concerning oversight and control. While Microsoft has implemented safeguards, including the Intergovernmental Assurance Agreement (IGAA) with G42, which mandates adherence to stringent cybersecurity, national security, and export control requirements, concerns persist regarding the effectiveness of these measures against sophisticated adversaries such as China, who possess considerable cyberattack experience.

The debate surrounding the UAE’s AI ambitions echoes broader concerns about the global distribution of AI capabilities. Many experts, including Sella Nevo, founding director and principal research at the Center on AI, Security, and Technology (CAST) at the global nonprofit policy think tank RAND Corp, note that deploying sensitive technology in regions with greater operational freedom can present heightened security risks. Nevo correctly pointed out the relative difficulty of conducting malicious operations in nations like the UAE compared to the United States, further compounding security anxieties.

Moreover, the UAE’s status as a nation openly fostering AI development allows for easier access by potential adversaries. The UAE’s aggressive adoption of AI, placing it at the top of lists for widespread utilization, underscores the urgency for robust security protocols. While Microsoft’s investment is viewed positively, this concentration of advanced technology remains a focal point for security assessments. The current licensing and guardrails are viewed as a starting point, with ongoing evaluations of the risks. Policymakers are demanding continuous monitoring and stringent enforcement of export controls and security protocols to prevent technology from falling into the wrong hands, particularly with the rise of China’s emerging AI capabilities.

The situation highlights a broader trend: the global contest for dominance in AI technology and the corresponding efforts to secure that technology and mitigate its potential misuse. Robert Lemos has meticulously tracked these trends, accurately diagnosing the risk and impact of this situation.