Abu Dhabi-based tech firm Group 42 said Tuesday that it is partnering with Italian artificial intelligence startup iGenius to build what it calls Europe's "largest" AI computer deployment.

The $1 billion project, called Colosseum, will be developed over five years using Nvidia (NASDAQ:NVDA) technology, and is expected to transform Italy into a key hub for AI innovation,  Reuters reports.

The agreement is part of a broader $40 billion investment commitment from the United Arab Emirates to Italy, announced during a bilateral summit in February in Rome. Prime Minister Giorgia Meloni called the partnership a "key milestone" in reshaping Italy's economic and technological future.

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A Billion-Dollar Colosseum Of Code in Italy

Colosseum, the name of the new data center, will be housed in southern Italy and aims to establish the region as a powerhouse for AI development. G42, backed by Abu Dhabi's sovereign wealth fund Mubadala and U.S. private equity giant Silver Lake, will lead financing for the initial buildout, Reuters reports.

According to Reuters, Italian Industry Minister Adolfo Urso highlighted the project during Investopia's conference in Milan on May 16, pointing to “strong chances” that the facility will be located in the Apulia region. 

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A Strategic Pivot Toward AI Dominance

The AI initiative is one of over 40 new deals signed between the UAE and Italy as part of a comprehensive strategic partnership. The broader package includes collaborations in energy, defense, telecommunications, and cybersecurity, Reuters reports.

Eni (NYSE:E), Italy's energy giant, signed parallel agreements with G42 and other UAE firms to power data centers using natural gas plants equipped with carbon capture technology. Meanwhile, Italian defense manufacturer Leonardo signed a follow-up deal with the UAE's EDGE Group focused on joint production and technology transfer, according to Reuters.

Meloni emphasized that this realignment reflects Italy's focus on strategic sectors. Reuters says the prime minister called the UAE's financial commitment a “historic” opportunity to drive growth and reshape Italy's international role.

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“It is a historic day, another milestone in our relationship. The choice we made was to focus this partnership on strategic axes, such as artificial intelligence, data centers, space research, renewable energy, and rare earths,” Meloni said during the Italy-United Arab Emirates Business Forum, according to Reuters.

Nvidia, Mubadala, And Silver Lake Signal Serious Stakes

Support from Nvidia, Mubadala, and Silver Lake underscores the scale and strategic weight behind the Colosseum project. According to Reuters, Charlie Boyle, vice president and general manager of DGX systems at Nvidia, said Colosseum will be one of the largest deployments of Nvidia’s flagship servers globally.

G42's links to Abu Dhabi's royal family and its growing role in the AI ecosystem reinforce the significance of the partnership, Reuters says. As Italy works to establish itself as a leading force in European AI, the Colosseum project could become a key asset in that strategic push.

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