Prime Highlights
- Microsoft and Abu Dhabi’s G42announced a major expansion of data centre capacity in the UAE, adding 200 MW through Khazna Data Centers.
- The partnership aims to strengthen the UAE’s position as a regional hub for AI and cloud computing, supporting both business and government innovation.
Key Facts
- Microsoft’s $15 billion UAE investmentincludes $7.3 billion (2023–2025) and $7.9 billion (2026–2029) for upgrading its Azure data center network.
- The U.S. recently approved the export of Nvidia chips to the UAE, boosting efficiency for AI-driven data centersoperated by G42 and Microsoft.
Background
Microsoft and Abu Dhabi’s G42 have announced a major expansion of data centre capacity in the United Arab Emirates (UAE), marking another step in their growing technology partnership. The companies will add 200 megawatts (MW) of new data centre capacity through Khazna Data Centers, a subsidiary of G42. The new facilities are expected to start coming online before the end of next year, according to a joint statement released on Wednesday.
Microsoft is expanding in the UAE as part of its $15 billion investment, showing that the country is quickly becoming a regional hub for AI and cloud computing. According to Microsoft, it will invest $7.3 billion from 2023 to 2025 and then $7.9 billion from 2026 to 2029.
The initiative is about upgrading the Azure data center network of Microsoft to offer the most secure, scalable, and sovereign cloud services in the UAE that would be accessible to businesses and government institutions. Further, it will become a platform for the development and deployment of AI-powered solutions across different sectors.
The announcement follows recent approval by the U.S. government to export advanced Nvidia chips to the UAE, enabling the country’s AI-driven data centres to operate more efficiently.
Microsoft had earlier invested $1.5 billion in G42 to acquire a minority stake in the company. G42 is supported by leading investors, including Silver Lake, Abu Dhabi’s Mubadala Investment Company, and billionaire Ray Dalio’s family office.
Microsoft and G42 are building the UAE’s digital ecosystem and making it a global leader in AI innovation.
