Cisco Joins Stargate UAE Initiative

Rhea-AI Summary

Cisco (CSCO) has joined the Stargate UAE consortium as a preferred technology partner, signing a Memorandum of Understanding (MoU) alongside G42, OpenAI, Oracle, NVIDIA, and SoftBank Group. The initiative aims to construct an AI data center in Abu Dhabi with a target capacity of 1 GW, with an initial 200 MW capacity planned for 2026.

As part of the collaboration, Cisco will provide advanced networking, security, and observability solutions to support OpenAI workloads and accelerate the deployment of next-generation AI compute clusters. The MoU was signed by Cisco CEO Chuck Robbins and aligns with President Trump's recent regional visit and Cisco's broader AI initiatives in the Middle East.

Positive

• Strategic partnership with major tech companies (OpenAI, NVIDIA, Oracle) strengthens Cisco's position in AI infrastructure
• Access to large-scale AI data center project (1 GW capacity) provides significant business opportunity
• Expansion into Middle East's growing AI market through established partnerships

Negative

• None.

Insights

Technology Infrastructure Analyst

Cisco's strategic partnership in the UAE's 1GW AI data center positions it for significant growth in the booming AI infrastructure market.

Cisco's entrance into the Stargate UAE consortium represents a significant strategic positioning in the rapidly expanding AI infrastructure market. The company will provide critical networking, security, and observability solutions for a massive AI data center in Abu Dhabi with 1 GW target capacity - with 200 MW coming online by 2026.

This partnership carries substantial revenue potential for Cisco. High-performance AI infrastructure demands advanced networking capabilities that align perfectly with Cisco's core competencies. By securing preferred technology partner status alongside industry giants like OpenAI, NVIDIA, Oracle, G42, and SoftBank, Cisco has positioned itself at the intersection of two powerful growth vectors: AI compute infrastructure and Middle East digital transformation.

The timing is particularly strategic given the Biden administration's emphasis on enhancing US-UAE technology cooperation. This positions Cisco to benefit from potential government-backed initiatives and funding.

For context, modern AI data centers require extremely high-performance networking to maximize GPU cluster efficiency. Cisco's advanced networking portfolio is well-suited to address the complex demands of large language model training and inference workloads that OpenAI will likely deploy at this facility.

This agreement extends Cisco's regional momentum following CEO Chuck Robbins' recent Middle East tour and related strategic announcements. By securing this high-profile partnership, Cisco demonstrates its commitment to enabling AI infrastructure globally while strengthening its competitive position against networking rivals in the lucrative AI data center space.

Cisco to collaborate with G42, OpenAI, Oracle, NVIDI, and SoftBank Group to power AI innovation and infrastructure development in recently announced UAE-US AI Campus in Abu Dhabi

News Summary

• Cisco to provide networking, security and observability hardware and software solutions for OpenAI workloads, advancing AI infrastructure in the Middle East.
• Strategic partnership supports the Stargate Project's commitment to safe, broadly distributed AI development and responsible capital stewardship.
• MOU signed by Cisco's Chair and Chief Executive Officer, Chuck Robbins, together with G42, OpenAI, Oracle, NVIDIA and SoftBank Group.
• MOU aligns with President Trump's visit to the region last week and complements Cisco's recently announced initiatives focused on powering the AI ambitions in the Middle East.
• UAE President His Highness Sheikh Mohammed bin Zayed highlighted this milestone project in Abu Dhabi, during a signing ceremony attended by Cisco President and Chief Product Officer Jeetu Patel.

SAN JOSE, Calif., May 22, 2025 /PRNewswire/ -- Cisco (NASDAQ: CSCO), the global leader in networking and security, today announced the signing of a Memorandum of Understanding (MoU) to join the Stargate UAE consortium as a preferred technology partner. The strategic MoU, signed by Cisco's Chair and Chief Executive Officer Chuck Robbins together with other consortium partners, G42, OpenAI, Oracle, NVIDIA and SoftBank Group, envisions the construction of an AI data center in Abu Dhabi with a target capacity of 1 GW, with an initial 200 MW capacity to be delivered in 2026.

As a partner in this initiative, Cisco will provide advanced networking, security and observability solutions to accelerate the deployment of next-generation AI compute clusters.

"With the right infrastructure in place, AI can transform data into insights that empower every organization to innovate faster, tackle complex challenges, and deliver tangible outcomes," said Chuck Robbins, Cisco Chair and CEO. "Cisco is proud to join this consortium to harness the power of AI and deliver the infrastructure that will enable tomorrow's breakthroughs."

Today's announcement follows Robbins' recent visit to Bahrain, Saudi Arabia, Qatar, and the UAE where Cisco announced a series of strategic initiatives across all phases of the AI transformation in the region. These new initiatives employ Cisco's trusted technology across the region's AI infrastructure buildouts, leveraging the company's deep expertise in networking and security together with longstanding regional partnerships. By fostering the development of secure, AI-powered digital infrastructure and collaborating with key Cisco partners, the company is delivering world-class, trusted technology to the region. For more information on Cisco's recent announcements in the Middle East, see here.

About Cisco 

Cisco (NASDAQ: CSCO) is the worldwide technology leader that is revolutionizing the way organizations connect and protect in the AI era. For more than 40 years, Cisco has securely connected the world. With its industry leading AI-powered solutions and services, Cisco enables its customers, partners and communities to unlock innovation, enhance productivity and strengthen digital resilience. With purpose at its core, Cisco remains committed to creating a more connected and inclusive future for all. Discover more on the Cisco Newsroom. 

Forward-Looking Statements 

This press release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, among others, statements regarding Cisco's future financial or business performance, strategies or expectations, including the anticipated timing, consummation and expected benefits of its plans in the United Arab Emirates (UAE). Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including, among other things, the ability of Cisco to achieve expected benefits of its investments, business and economic conditions and growth trends, increased competition, global economic conditions and uncertainties in the geopolitical environment and other risk factors set forth in Cisco's most recent reports on Form 10-K and 10-Q, respectively. Any forward-looking statements in this release are based on limited information currently available to Cisco, which is subject to change, and Cisco will not necessarily update the information. 

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SOURCE Cisco Systems, Inc.

FAQ

What is Cisco's role in the Stargate UAE initiative?

Cisco will provide advanced networking, security, and observability solutions to support OpenAI workloads and accelerate the deployment of next-generation AI compute clusters in Abu Dhabi's AI data center.

What is the capacity of the Stargate UAE AI data center and when will it be operational?

The AI data center has a target capacity of 1 GW, with an initial 200 MW capacity planned to be delivered in 2026.

Who are the partners involved in the Stargate UAE consortium with Cisco?

The consortium partners include G42, OpenAI, Oracle, NVIDIA, and SoftBank Group.

How does the Stargate UAE initiative align with Cisco's Middle East strategy?

The initiative complements Cisco's recently announced strategic initiatives across the Middle East focused on AI transformation and infrastructure development in the region.