UAE to invest €40 billion ($46.4 billion) in Germany, with 1 gigawatt of data center capacity planned

The United Arab Emirates plans to invest 40 billion euros ($46.4 billion) in Germany as ties deepen through a state visit by UAE President Sheikh Mohamed bin Zayed Al Nahyan. Data center infrastructure is a central part of the package, alongside projects in artificial intelligence, digital infrastructure and energy.

Data centers and digital infrastructure in focus

The announcement includes plans for roughly 1 gigawatt of new data center capacity. The investment also targets advanced digital infrastructure, with artificial intelligence and energy included in the scope.

Investment council and deeper economic ties

The UAE and Germany signed a declaration of intent to establish a German-UAE investment council. The council is intended to encourage further investment and strengthen public- and private-sector links.

Bavaria earmarked for industrial and tech investment

The package reportedly includes 10 billion euros earmarked for investment in Bavaria, a major hub for Germany’s industrial and technology sectors.

Trade links and prior UAE investment

The UAE is a key trading partner for Germany in the Gulf region. Bilateral non-oil trade reached $15.5 billion in 2025, according to a joint declaration issued Thursday. The UAE has already invested about 34 billion euros in Germany, including in chemicals and renewable energy.

Why it matters

Germany’s push for new investment arrives as the UAE expands efforts to diversify beyond oil and build longer-term economic and strategic relationships. With data center capacity and digital infrastructure included, the plan also ties the relationship to demand for cloud and compute capacity in Europe.