Just days ahead of the Artificial Intelligence Action Summit in Paris, the French presidency has announced a significant financial initiative related to AI, marking a major milestone in the country's efforts to become a global leader in the field. French President Emmanuel Macron and United Arab Emirates' Mohamed bin Zayed Al Nahyan have signed an agreement to invest €30 to €50 billion ($31 to 52 billion at current exchange rates) in building a massive data center dedicated to artificial intelligence in France.

According to a report from the AFP, the majority of the investment will go towards a data center with a capacity of up to 1GW. This massive investment is expected to be a major draw for foreign investors, particularly those in the tech industry, who are looking to reduce their carbon footprint. France's unique energy profile, with around 65% of its electricity production coming from nuclear power plants and 25% from renewable sources, makes it an attractive location for power-hungry data centers.

France's digital and AI minister, Clara Chappaz, announced on Thursday morning that the country has identified 35 locations that could be used to build out new data centers with fast-track administrative approvals. The UAE's data center investment is likely to take advantage of this framework, which is designed to attract foreign investment in the sector. A consortium of French and Emirati investors, including MGX, the Emirati investment firm dedicated to artificial intelligence, will back the data center project in France.

MGX was also listed as one of the initial investors in Stargate, the large-scale AI investment project led by SoftBank and OpenAI. Commenting on Stargate and Chinese AI startup DeepSeek's recent breakthrough, Chappaz sounded hopeful about France's and Europe's future prospects in the field. "Just the magnitude and the scale between these two announcements show that this is just the beginning," she said at a tech meetup organized by Balderton and Photoroom on Thursday evening. "Because this technology is our opportunity to catch up," she added.

The AI Action Summit, which takes place on Monday and Tuesday, is expected to attract heads of state from around the world, including U.S. Vice President J.D. Vance, China's Vice Premier Zhang Guoqing, European Commission President Ursula von der Leyen, and Chancellor of Germany Olaf Scholz. The summit is likely to result in more investment deals and a joint statement, potentially focusing on the environmental impact of artificial intelligence.

The diplomatic agreement could have significant implications for the global AI industry, as countries and companies increasingly recognize the need to mitigate the environmental impact of AI development. With France positioning itself as a leader in the field, the country's efforts to attract foreign investment and talent are likely to have a ripple effect across Europe and beyond.

As the AI Action Summit gets underway, all eyes will be on Paris to see what other announcements and initiatives will be unveiled. One thing is clear, however: France's massive investment in AI infrastructure is a significant step forward in the country's bid to become a global AI hub, and a major signal to the rest of the world that it is serious about harnessing the power of artificial intelligence to drive economic growth and innovation.