France and the United Arab Emirates have reached an agreement to develop a 1 gigawatt artificial intelligence data centre, with investments estimated between$30 billion and$50 billion. President Emmanuel Macron met with Emirati leader Sheikh Mohamed bin Zayed al-Nahyan in Paris to discuss the project, ahead of an upcoming AI summit.

The February 10-11 summit will bring together representatives from around 100 countries, aiming to highlight France and Europe's role in the AI sector. The initiative is part of broader efforts to compete with the US and China, which currently dominate the industry. Both nations expressed their commitment to strategic AI collaboration and future investments in the sector.

Planned investments will cover AI advancements in France and the UAE, including high-performance chips, data centres, and talent development. The agreement also involves creating virtual data embassies to strengthen cloud and AI sovereignty. The first investment announcements are expected at the Choose France summit later this year.

The French government has identified 35 potential sites for AI data centres, supporting the country's ambition to become a major AI hub.