Emirates Integrated Telecommunications Company (du) has unveiled a major hyperscale data centre agreement with Microsoft, set to cost around 2 billion dirhams (approximately US$544.54 million). Microsoft will be the primary tenant of the facility, which will be developed and operated by du, with capacity delivered in phases.
The deal was announced during Dubai AI Week, a week-long event dedicated to promoting global AI innovation. Fahad Al Hassawi, CEO of du, hailed the agreement as a “pivotal leap” towards realizing the company’s strategic vision of transforming the UAE’s digital ecosystem.
While specific technical details, sustainability goals, and timelines have yet to be disclosed, the new hyperscale data centre is expected to provide significant data storage and cloud computing services for enterprise customers. Currently, du operates five data centres across the UAE and has been making heavy investments to position the region as a global AI hub, alongside the United States.
This announcement is the latest in a series of collaborations between du and Microsoft. In mid-March, du introduced Microsoft 365 Copilot internally to equip employees with advanced AI tools designed to improve collaboration, streamline workflows, and increase productivity. Additionally, du and Microsoft are working together on integrating Microsoft Azure’s security stack with du Tech’s managed services to provide a comprehensive security solution for businesses in the UAE. At Mobile World Congress (MWC) 2025, another collaboration was announced aimed at enhancing call centre operations using cutting-edge AI technologies.
