In a move to expand its European footprint, UAE-backed artificial intelligence firm G42 is nearing a deal to secure data center capacity from Germany’s Northern Data, granting it access to thousands of advanced Nvidia chips.
Article contents:
- Introduction: G42 expands in Europe
- Deal details: Access to Nvidia chips
- Northern Data’s pivot: From crypto to AI
- G42’s global ambitions
- Northern Data’s strategic review
- Conclusion: Transcontinental infrastructure
Introduction: G42 expands in Europe
Northern Data AG is nearing a deal to provide data center capacity to Abu Dhabi-based G42 as the state-backed artificial intelligence company expands in Europe, according to people familiar with the matter. The transaction marks a significant strategic step for G42 to secure vital computing power on the European continent.
Deal details: Access to Nvidia chips
Northern Data will grant G42’s cloud computing arm, Core42, access to roughly half of the 23,000 Nvidia graphics processing units owned by Northern Data. Deal terms are still subject to change and the agreement is not yet final. The German company operates data centers in the United States, Sweden, Norway, and Portugal.
Northern Data’s pivot: From crypto to AI
Northern Data previously provided computing capacity to cryptocurrency miners but pivoted to capitalize on the artificial intelligence boom amid surging demand. Northern Data has stated it expects revenue for its Taiga cloud unit, which delivers generative AI services, to jump by up to 74% this year compared to 2024.
G42’s global ambitions
Abu Dhabi’s G42 is looking to expand beyond the Middle East, backed by major investment pledges across Asia, Africa, and the United States. In June, G42 opened an office in London to sell artificial intelligence solutions to the private sector and government agencies. The company has positioned itself as a hyperscale service provider that can also bring its country’s substantial oil wealth along with it.
This year, the United Arab Emirates is participating in investment pledges across Europe, including up to 50 billion euros ($58 billion) in French data centers and $40 billion in Italy.
Northern Data’s strategic review
Separately, Northern Data recently announced it has received strategic interest for its Taiga Cloud and Ardent divisions, which build and service data centers. Northern Data’s cryptocurrency mining operations are also undergoing a strategic review and could be put up for sale.
Conclusion: Transcontinental infrastructure
The potential deal illustrates how the battle for artificial intelligence computing power has become increasingly global. State-backed firms like G42 are seeking to secure infrastructure in key strategic regions, while data center companies like Northern Data are adapting rapidly to meet immense demand generated by the AI revolution. It stands as a testament that the future of artificial intelligence is being built on a global network of silicon, energy, and capital.
Frequently asked questions
Who is G42?
G42 is a leading artificial intelligence and cloud computing company headquartered in Abu Dhabi, United Arab Emirates. It sits at the forefront of the country’s drive to become a global AI powerhouse and enjoys strong government backing.
Why does G42 need data centers in Europe?
Having data centers in Europe allows G42 to better serve European clients with lower latency (faster response times) and compliance with local data regulations such as the General Data Protection Regulation (GDPR).
Why are Nvidia chips so important?
Nvidia graphics processing units (GPUs) are considered the gold standard for training and running advanced artificial intelligence models. Access to thousands of these chips represents a major competitive advantage.
