Emirati telecommunications provider du has announced plans to develop a state-of-the-art AED 2 billion ($544 million) hyperscale data center in the United Arab Emirates, marking a major milestone in the country’s digital transformation strategy. This facility will enhance du’s existing network of data centers across the UAE, boosting national cloud capabilities and positioning the UAE as a regional leader in artificial intelligence (AI) and digital infrastructure.
The new data center, developed in partnership with Microsoft, will be built in phases to meet growing demand for digital capacity, AI applications, and sovereign cloud solutions. Microsoft will leverage the center’s advanced computing infrastructure to support its cloud services and future technologies.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, emphasized the importance of the initiative, stating, “This investment in digital infrastructure strengthens Dubai’s position at the forefront of innovation and technology.” Fahad Al Hassawi, CEO of du, added, “This agreement is a transformative step in reshaping the UAE’s digital landscape.”
The launch of the hyperscale data center aligns with the Dubai Universal Blueprint for Artificial Intelligence, which was introduced in 2024. The UAE telco currently operates five data centers across the country.
Last month, du and Microsoft announced a collaboration at Mobile World Congress in Barcelona, where Microsoft Azure’s innovative security stack will be integrated with du Tech’s managed services to offer a comprehensive 360-degree security solution for businesses in the UAE. This partnership will include Large Language Model (LLM) capabilities in du Tech’s cybersecurity offerings, enabling AI-driven predictive security insights and enhanced threat detection.
As part of its broader digital infrastructure push, du is also rolling out 5G-Advanced (5G-A) technology in Dubai, with plans to deploy thousands of base stations across the UAE by 2026. This project, dubbed “5G-A Country,” is a collaboration with Huawei and aims to accelerate the UAE’s digital transformation.
The new data center and the rollout of 5G-A technology further demonstrate du’s commitment to enhancing the country’s technological and digital infrastructure in alignment with the UAE’s Vision 2030 goals.
