Microsoft and the Abu Dhabi-based technology group G42 have announced a large plan to increase data centre power in the United Arab Emirates. They shared that they will add 200 megawatts of new data centre capacity in the country. This is part of a much bigger investment that Microsoft is making in the Gulf region, which is expected to be worth over 15 billion dollars in total.
The announcement was made on a Wednesday in Dubai. It shows how the UAE is trying very hard to become a leading place for advanced technology, especially artificial intelligence, also known as AI. Microsoft, one of the world’s biggest technology companies, is supporting this goal with money, resources, and expertise.
The new expansion of 200 megawatts will be carried out through Khazna Data Centers, which is a company owned by G42. Khazna is one of the largest data centre operators in the UAE, and it already manages several huge facilities across the country. The companies said that some parts of this new project will start becoming active before the end of next year. They did not share many technical details, but the announcement itself shows that the UAE expects a major rise in digital activity, cloud services, and AI usage.
Microsoft also explained its financial plans for the region. The company shared that from 2023 until the end of this year, its investment in the UAE will reach 7.3 billion dollars. Additionally, Microsoft has set aside another 7.9 billion dollars for the years 2026 to 2029. This means that the company will continue investing in the UAE for many years, showing strong trust in the country’s future.
The UAE has been building itself as an international centre for artificial intelligence. This includes developing new digital laws, opening advanced research centres, and working closely with large global technology companies. Because of this, the country now needs more data centres, more computing power, and more high-quality chips to support the growing demand for AI tools.
Microsoft also shared another important update. The company said that the administration of President Donald Trump in the United States had approved the export of advanced Nvidia chips to the UAE. Nvidia chips are extremely powerful processors that are used to train and run artificial intelligence models. Many companies around the world use them for AI research, cloud platforms, and machine-learning tasks. These chips are not easily available, and their export is highly controlled, so the approval is a big step for the UAE’s technology plans.
These advanced chips will be used in Microsoft’s data centres in the Gulf region. This will help the UAE continue its efforts to be a top global player in artificial intelligence. The country has spent billions of dollars building its AI ecosystem, including training programmes, partnerships with companies, and national AI strategies.
Last year, Microsoft made another major move involving G42. It invested 1.5 billion dollars to take a minority stake in the company. This means Microsoft now owns part of G42, even though it does not control the company. G42 is a powerful organisation in the UAE that works on AI, cloud services, healthcare technology, and many other advanced fields. The company is supported by well-known investors such as Silver Lake, the Abu Dhabi sovereign wealth fund called Mubadala, and the family office of billionaire Ray Dalio. These investors give G42 strong financial backing and help it work on big, international projects.
The partnership between Microsoft and G42 is important for both sides. For Microsoft, it opens the door to a fast-growing technology market in the Middle East. The Gulf region is investing heavily in cloud computing and AI, and Microsoft wants to be a major part of that growth. For the UAE, Microsoft’s support gives access to advanced technology, global expertise, and top-level data centre infrastructure.
Data centres are extremely important in today’s world. Every photo saved in the cloud, every online video, every app, and every AI tool depends on them. They keep information safe and allow people and companies to access digital services instantly. A 200-megawatt expansion is very large. It shows that the UAE expects huge growth in digital activity. More computing power will also help schools, hospitals, businesses, and government offices work faster and more efficiently.
The partnership also shows how countries and companies work together to shape the future of technology. AI needs strong computing systems, and strong computing systems need powerful data centres. By investing in these systems, the UAE is preparing itself for the next generation of technology.
This investment is also expected to create many jobs in the country. Building and running data centres requires engineers, technicians, security experts, software specialists, and other skilled workers. As the UAE expands its digital economy, more young people may get opportunities to work in advanced technology fields.
Another important thing to understand is that these investments are long-term. Data centres and AI infrastructure are not built for one or two years. They are designed to support technology for decades. So, Microsoft’s 15-billion-dollar commitment shows strong confidence in the UAE’s stability and vision.
G42, on the other hand, continues to grow its influence in the world of AI. The company has already partnered with international organisations, worked on medical technology projects, and helped the UAE build national digital systems. With Microsoft’s support, G42 is likely to play an even bigger role in the future.
Even though the companies did not share exact details about the location or structure of the new data centre expansion, the announcement itself matters a lot. It sends a message that the UAE is not slowing down. It is pushing forward to become a world leader in artificial intelligence, cloud technology, and digital innovation.
In simple words, this partnership means the UAE will have more power to store and process information, more access to advanced AI chips, more global partnerships, and more investment flowing into the country. Microsoft gets a chance to grow in a very important region, while the UAE gets the technology it needs to build its digital future.
