HO CHI MINH: Abu Dhabi-based AI company G42 is spearheading a project with commitments of up to US$1 billion to develop data centres and cloud computing services in Vietnam, marking the UAE firm’s push beyond the Gulf region.
“G42 is undertaking the project in partnership with FPT Corp, a technology and telecommunications firm, and the Viet Thai Group,” the companies said in a statement today.
Under the agreement signed in Ho Chi Minh City, the consortium plans to construct three data centres in Vietnam, with investment commitments totaling as much as US$1 billion. The companies did not disclose further details on the precise investment breakdown, project timeline, or the computing capacity involved.
The global surge in AI-related digital infrastructure is extending into Southeast Asia, where investors see significant growth potential. However, the region faces challenges such as limited land and power resources, which have prompted political and social concerns.
Recently, protesters in Malaysia gathered at a data centre construction site, raising issues over dust pollution and potential impacts on local water supplies.
FPT has become a key player in Vietnam’s AI ambitions, despite challenges stemming from US tariffs. Its new partner, G42, is among the leading Middle Eastern firms diversifying oil-based economies by investing heavily in AI.
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Backed by sovereign wealth funds and Microsoft Corp, G42 operates across sectors including health care and cloud computing. The company is the primary developer of OpenAI’s Stargate infrastructure project in the UAE, part of a planned 5GW data centre.
While G42’s main operations remain in the Gulf, it is expanding abroad with data centre and smart city projects across Africa and Asia. In the US, the firm has faced political scrutiny over previous deals with Chinese startups and Huawei Technologies Co.
G42 has stated it divested from Chinese assets and now supports the export of American AI chips, software, and models to limit China’s development, aligning with former President Donald Trump’s agenda.
At the World Economic Forum in January, G42 unveiled a framework for “Digital Embassies,” allowing companies to develop and manage computing services on foreign soil while ensuring that host countries retain full legal authority over AI models and data processed in the UAE.
-freemalaysiatoday
