Important Facts of the News
- Microsoft is investing $15.2 billion in the UAE.
- The company has partnered with G42 for a 200MW data centre expansion.
- Khazna Data Centres will deliver the capacity, starting by the end of 2026.
- The expansion enhances Microsoft Azure’s secure and sovereign cloud infrastructure in the UAE.
- Supports UAE’s goal to double the digital economy’s GDP contribution in 10 years.
- Advanced GPUs and AI services will support public and private sectors.
- Aligned with Microsoft’s plan to equip 1 million people in UAE with digital skills by 2027.
- Includes initiatives like the AI for Good Lab and Global Engineering Development Centre in Abu Dhabi.
Microsoft and G42 Expand Cloud Capacity to Accelerate Digital Growth in UAE
Microsoft is strengthening its footprint in the UAE’s digital landscape through a major data centre expansion in partnership with G42. This move is part of the company’s $15.2 billion commitment to foster innovation and digital resilience across the Emirates.
The collaboration between Microsoft and G42 will see an additional 200 megawatts of cloud and AI data centre capacity installed through Khazna Data Centres, a G42 subsidiary. The upgraded infrastructure is scheduled to start becoming operational towards the end of 2026. This capacity boost is expected to significantly bolster Microsoft Azure’s secure and scalable cloud services in the region.
Supporting UAE’s National Digital Strategy
The partnership between the two leaders in technology is aligned with the UAE’s broader aim of doubling the digital economy’s input to national GDP within the coming decade. The added data centre capacity will equip businesses, public institutions, and regulated industries with advanced tools including high-performance GPUs to amplify AI and machine learning capabilities.
A strong emphasis is placed on trust and responsible tech development. This is reflected in the Responsible AI Future Foundation, set up jointly by Microsoft, G42, and MBZUAI. The foundation is positioned as a global standard-setter in ethical AI evolution and governance.
Upskilling and Innovation at the Core
Alongside boosting infrastructure, Microsoft has committed to upskill more than one million individuals in the UAE by 2027. To support this, initiatives such as the Global Engineering Development Centre and the AI for Good Lab have already taken root in Abu Dhabi, helping cultivate the next generation of UAE-based tech innovators.
Microsoft’s Vice Chair and President Brad Smith highlighted that the project is focused on unlocking new horizons of opportunity across the nation, combining global tech expertise with G42’s local leadership.
G42 Group CEO Peng Xiao emphasized the mission to build a secure and collaborative intelligence grid based in Abu Dhabi, keeping AI innovation human-centric.
This expansion not only reinforces the UAE’s position as a digital hub in the Middle East but also signals a long-term investment in responsible, secure, and inclusive economic growth powered by artificial intelligence and cloud services.