Shares of NVIDIA outperforming today in a red tape after the U.S. reportedly approved the sale of several billion dollars worth of its chips to the UAE.

For today's tech check, our Christina Parts of Nevelos has more on how those chips might supercharge the Gulf State's AI ambitions.

Hey, K.P.

And it all has to do with power. So let's start with the U.S. possibly just approving billions of dollars in NVIDIA chip exports to the UAE under an agreement signed in May. And this is according to Bloomberg,

those chips in particular were power, a massive wave of data center construction. And the

timing matters because of what's happening here at home. Data centers already account for over

4% of U.S. electricity consumption, and that could

triple by 2028. In Washington, D.C., for example, residential bills jumped $21 per month, starting

just in June, with half of that increase driven by data center demand. A single AI data

center can consume as much power as 80,000 American households.

The UAE, though, doesn't have that problem.

Running cutting-edge AI models take staggering amounts of electricity, the cheaper your energy, the cheaper your intelligence.

Business electricity in the UAE costs about 11 cents per kilowatt, roughly 30% cheaper than the U.S. average.

The country runs on cheap natural gas and nuclear power.

Morgan Stanley calls the UAE, quote, an AI leader in the making,

with its energy strategy 2050, pushing massive solar investments alongside AI infrastructure.

UAE is also investing 1.5 billion.

They had a big announcement not too long ago

in new data center capacity by 2027.

Under the US UAE agreement,

this is the United Arab Emirates, by the way,

American hyperscalers will operate a massive

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