Microsoft and G42 have unveiled a major expansion of cloud infrastructure in the UAE, adding 200 megawatts of datacentre capacity through Khazna Data Centers as part of Microsoft’s $15.2 billion national investment plan. The new capacity will begin coming online before the end of 2026, helping deliver sovereign, secure, and scalable Microsoft Azure cloud services.
The move deepens both companies’ commitment to responsible innovation, enhanced cybersecurity, strong data protection, and ethical AI standards. It also builds on the Responsible AI Future Foundation, launched with MBZUAI, which has become a global model for safe and collaborative AI development.
The expansion supports the UAE’s ambition to double the digital economy’s GDP contribution within the next decade. By providing advanced GPUs and AI infrastructure, it will enable government entities, regulated sectors, and enterprises to innovate faster and operate more efficiently.
Aligned with Microsoft’s pledge to skill one million people in the UAE by 2027, the project is set to unlock new job opportunities and strengthen local expertise in cloud and AI technologies. Existing collaboration already includes the Global Engineering Development Center and the AI for Good Lab in Abu Dhabi.
Brad Smith, Microsoft Vice Chair and President, said the expansion represents a long-term commitment to powering the UAE’s future economy and technology leadership. Peng Xiao, G42 Group CEO, emphasized that this collaboration accelerates the Intelligence Grid — sovereign, secure, globally connected infrastructure designed for the AI era.
Together, Microsoft and G42 are strengthening the digital backbone that will fuel the UAE’s next wave of innovation, industry transformation, and inclusive economic growth.
