Abu Dhabi — Microsoft and G42 have unveiled plans to expand data centre capacity in the United Arab Emirates by 200 megawatts, reinforcing the country’s ambitions to become a leading global hub for artificial intelligence and digital innovation.
The expansion, part of Microsoft’s $15 billion investment commitment in the UAE, will be executed through Khazna Data Centers, a G42 subsidiary, and is expected to begin operations before the end of next year. The move builds on Microsoft’s rapidly growing presence in the region, with total investments reaching $7.3 billion by end-2025 and an additional $7.9 billion allocated for 2026–2029.
The project will significantly boost Microsoft Azure’s regional capacity, enhancing secure and scalable cloud and AI services tailored to both public and private sector needs. The expansion aligns with the UAE’s digital transformation agenda, which has seen massive investments in sovereign cloud solutions and high-performance computing infrastructure.
Earlier, Microsoft’s partnership with G42 deepened following its $1.5 billion strategic investment in the Emirati AI and cloud company, which is backed by Mubadala, Silver Lake, and Ray Dalio’s family office. The collaboration reflects a shared vision to advance AI innovation responsibly and foster local data sovereignty.
In a related development, Microsoft confirmed that the U.S. government has approved the export of advanced Nvidia chips for use in the UAE’s new AI data centres—critical for accelerating large-scale AI model training and cloud applications across industries.
Together, the expanded capacity and technology infusion position the UAE at the forefront of the Middle East’s AI and digital infrastructure landscape, bolstering both economic diversification and global competitiveness.
