Abu Dhabi-based tech firm G42 is reportedly nearing a major partnership with Germany’s Northern Data AG, in a move that could significantly boost its artificial intelligence (AI) infrastructure across Europe. Sources close to the matter suggest the deal is still under negotiation, but if finalized, it would represent a strategic milestone in G42’s global expansion.
The proposed agreement would see Northern Data allocate nearly half of its 23,000 Nvidia GPUs to Core42, G42’s cloud computing arm. The collaboration reflects both companies’ sharpened focus on high-performance computing and generative AI, as global demand for AI capacity continues to surge.
Northern Data, once a player in the cryptocurrency mining space, has pivoted toward AI computing to meet rising market needs. Operating data centers in the U.S., Sweden, Norway, and Portugal, its cloud unit Taiga is expected to grow revenues by up to 74% this year, fueled by expanding enterprise interest in AI technologies.
While both companies have yet to comment publicly, the market has reacted—Northern Data’s shares dropped by around 5% on Tuesday in Frankfurt and remain down over 50% year-to-date. Still, the potential deal with G42 points to broader shifts underway.
The UAE has been ramping up efforts to become a global AI leader, with G42 at the forefront. The company has already launched a London office and committed to substantial investments across the U.S., Asia, and Africa. The country itself is investing heavily in European AI infrastructure, with up to €50 billion pledged for France and $40 billion for Italy.
Northern Data, meanwhile, is reviewing strategic options for its Taiga Cloud and Ardent data units, as well as considering divestment from its legacy crypto operations.
If the deal is finalized, it would underscore Europe’s rising importance in the global AI race and reaffirm the UAE’s ambitions to shape the future of advanced computing.
