From CNBC · Hugh Leask · · 1m 30s
The UAE is buying its way into German AI
Abu Dhabi is putting 40 billion euros into Germany, and a gigawatt of data centers is the centerpiece.
In brief
Abu Dhabi is putting 40 billion euros into Germany, and a gigawatt of data centers is the centerpiece. Gulf capital is moving from oil hedging into European compute and defense, and Germany's weak economy makes it a willing partner. Originally reported by CNBC.
Forty billion euros, one handshake
The UAE will invest 40 billion euros, about $46.4 billion, in Germany. It was announced during President Sheikh Mohamed bin Zayed Al Nahyan's state visit with Chancellor Friedrich Merz.
A gigawatt of new compute
Roughly 1 gigawatt of new data center capacity anchors the package, alongside AI, digital infrastructure and energy. Around 10 billion euros is reportedly aimed at Bavaria.
Defense is on the table too
The two countries also agreed to deepen defense cooperation, pushing the relationship well past trade and into security.
A council to keep it going
Germany and the UAE signed a declaration of intent to create a joint investment council, meant to keep public and private money flowing after the state visit ends.
Oil money looking for a job
Georgetown's Paul Musgrave says the Gulf wants a portfolio beyond crude, and buying into supply chains and companies is how Abu Dhabi builds influence in Europe.
“developing new friends and influence in Europe”
Germany needs the win
Europe's largest economy is stalling, and Merz needs something to show for it. The UAE has already put about 34 billion euros into German chemicals and renewables, with $15.5 billion in non-oil trade in 2025.
“Germany is in a bit of an economic doldrums right now”
Here's the gist
Gulf capital is moving from oil hedging into European compute and defense, and Germany's weak economy makes it a willing partner.
