Northern Data partners with Core42 to bring 10K GPUs to Europe

Northern Data, a German cloud computing company, has struck a major partnership with Core42, the cloud division of UAE-based artificial intelligence holding company G42, to dramatically expand AI computing capacity across Europe. The agreement grants Core42 access to up to 10,000 graphics processing units (GPUs) from Northern Data’s Taiga Cloud platform, representing one of the largest AI infrastructure deals announced this year.

This partnership reflects the growing global race to build “sovereign AI infrastructure”—computing resources that nations and regions can control independently rather than relying entirely on foreign cloud providers. For businesses, this means potentially faster, more reliable access to the specialized computing power that modern AI applications demand.

Understanding the GPU shortage challenge

Graphics processing units have become the backbone of artificial intelligence development, handling the massive computational workloads required to train and run AI models. Unlike traditional computer processors that handle tasks sequentially, GPUs can perform thousands of calculations simultaneously, making them essential for everything from ChatGPT-style language models to image recognition systems.

The global demand for AI-capable GPUs has far outstripped supply, creating bottlenecks that slow down AI development and deployment. Major cloud providers like Amazon Web Services and Microsoft Azure often have waiting lists for GPU access, while the cost of GPU time has skyrocketed. This scarcity has made partnerships like the Northern Data-Core42 deal increasingly valuable for companies seeking reliable AI computing resources.

Strategic expansion across continents

Core42 brings significant deployment experience to this partnership, having already established AI infrastructure projects in the United Arab Emirates, France, and Italy. This existing footprint provides a foundation for rapid European expansion, allowing the company to leverage proven operational expertise rather than starting from scratch.

Northern Data has undergone its own transformation, pivoting from cryptocurrency mining operations to become a major player in AI infrastructure. The company now operates data centers across the United States, Sweden, Norway, and Portugal, with its Taiga Cloud division focused specifically on generative AI services. Industry analysts project Taiga Cloud’s revenues could grow by 74% in 2025, reflecting the surging demand for AI computing resources.

The partnership also connects to broader European Union initiatives, particularly the InvestAI program, which aims to develop what officials call “AI gigafactory infrastructure” across Europe. These facilities would function similarly to Tesla’s automotive gigafactories—large-scale, highly efficient production centers, but for AI computing rather than electric vehicles.

Building sovereign AI capabilities

The concept of sovereign AI infrastructure has gained prominence as nations recognize the strategic importance of controlling their own AI capabilities. Rather than depending entirely on foreign cloud providers, countries are investing in domestic or regionally controlled computing resources that can serve their specific needs while maintaining data sovereignty.

For European businesses, this means potentially having access to AI computing resources that comply with local data protection regulations like GDPR while offering lower latency and more predictable availability than distant cloud centers. The Northern Data-Core42 partnership represents a significant step toward this goal, combining European infrastructure with Middle Eastern investment and operational expertise.

Core42’s broader European strategy includes a joint venture with Nvidia, Mubadala (Abu Dhabi’s sovereign wealth fund), and MGX to build what could become Europe’s largest AI data center campus. The company has also committed to multibillion-euro investments in French and Italian data center expansion, creating a comprehensive network of AI-capable infrastructure across the continent.

Microsoft connection strengthens ecosystem

The partnership gains additional strategic weight through Core42’s parent company G42’s relationship with Microsoft. Earlier this year, the software giant invested $1.5 billion in G42, creating a collaboration that extends far beyond simple cloud services.

Under their expanded partnership, G42 runs its AI applications on Microsoft Azure while jointly delivering AI solutions to government and enterprise clients globally. The collaboration includes workforce development initiatives aimed at building AI expertise across the Middle East, Central Asia, and Africa—regions where skilled AI talent remains scarce.

Microsoft has emphasized that this partnership includes unprecedented security and compliance commitments, addressing concerns about technology transfer and ensuring adherence to U.S. and international trade regulations. This framework could serve as a model for future cross-border AI infrastructure partnerships.

Industry implications and competitive dynamics

This partnership arrives as the AI infrastructure landscape becomes increasingly competitive and geographically distributed. Traditional cloud giants like Amazon, Google, and Microsoft face growing competition from specialized AI infrastructure providers, while nations seek to reduce their dependence on any single provider or country.

For businesses planning AI deployments, the Northern Data-Core42 partnership offers several potential advantages: reduced dependence on hyperscale cloud providers, potentially lower costs through increased competition, and access to infrastructure specifically optimized for AI workloads rather than general computing tasks.

The deal also reflects the growing importance of Middle Eastern investment in global technology infrastructure. UAE-based entities have emerged as major players in AI development, leveraging sovereign wealth fund resources to build capabilities that extend far beyond their domestic markets.

Looking ahead

The success of this partnership will likely influence similar deals across the AI infrastructure landscape. As demand for AI computing continues to outpace supply, strategic partnerships between infrastructure providers and well-funded technology companies may become the norm rather than the exception.

For European businesses and governments, the partnership represents progress toward the goal of technological sovereignty—the ability to access cutting-edge AI capabilities without complete dependence on foreign providers. Whether this model can deliver on its promises of improved performance, lower costs, and greater control remains to be seen, but the scale of investment suggests confidence in the approach.

As Aroosh Thillainathan, Northern Data’s founder and CEO, noted, the partnership aims to “build sovereign, high-performance AI infrastructure that meets the world’s surging demand for compute power.” For an industry where access to computing resources often determines competitive advantage, that’s a goal with implications extending far beyond the companies directly involved.