Microsoft and G42 Expand UAE Data Centers to Boost AI and Cloud Growth
Microsoft and Abu Dhabi-based G42 have announced a major 200-megawatt data center expansion in the United Arab Emirates. The project forms part of a broader $15 billion investment plan aimed at strengthening the country’s position as a growing hub for artificial intelligence and cloud computing. The expansion will be executed through Khazna Data Centers, a G42 subsidiary, and is expected to begin operations before the end of next year.
According to both companies, this move reflects a shared commitment to advancing digital infrastructure across the region. The additional capacity will help deliver high-performance computing power, supporting enterprise AI workloads and enabling faster adoption of next-generation technologies.
Multi-Billion Investment Strengthens AI and Cloud Strategy
Microsoft confirmed that its total investment in the UAE will reach $7.3 billion by the end of this year. Furthermore, an additional $7.9 billion is planned for 2026 through 2029, highlighting the long-term vision for the region’s tech ecosystem.
Recently, the U.S. administration also approved the export of advanced Nvidia chips for use in local data centers, a move expected to boost the country’s AI infrastructure. With these approvals and new capacity, the UAE continues its effort to become a global center for artificial intelligence development and research.
Microsoft previously invested $1.5 billion to acquire a minority stake in G42. The company is supported by several major investors, including Silver Lake, Mubadala, and the family office of Ray Dalio. These partnerships illustrate the growing collaboration between international and regional technology players.
Powering the Next Phase of Digital Growth
The new expansion will enhance the availability of AI and cloud infrastructure across the UAE. It is designed to strengthen secure and scalable cloud computing through Azure’s sovereign data services. As digital transformation accelerates globally, the move positions the UAE as one of the leading destinations for high-capacity data operations.
This development not only aligns with the UAE’s national AI strategy but also reflects increasing global demand for reliable, energy-efficient cloud platforms. With this step, both Microsoft and G42 aim to deliver innovation while supporting regional sustainability and digital resilience.
