Microsoft and G42 have announced a 200-megawatt expansion of data centre capacity in the UAE, delivered through Khazna Data Centres, a subsidiary of G42. The expansion forms part of Microsoft’s $15.2 billion investment announcement in the UAE.
The expansion is expected to start coming online before the end of 2026. The partnership aims to accelerate the nation’s transformation.
The expansion is underpinned by a commitment to trust and innovation. Microsoft and G42’s partnership is grounded in standards of cybersecurity, data protection, and AI. The Responsible AI Future Foundation – established through a partnership between Microsoft, G42, and MBZUAI – serves as a model for AI development and governance.
Microsoft Azure data centre to support UAE digital economy strategy
The 200MW data centre expansion will provide AI and cloud infrastructure to the UAE, strengthening Microsoft Azure’s cloud services. The partnership supports the UAE’s strategy, which aims to double the contribution of the economy to GDP over the next decade.
GPUs and AI capabilities will empower organisations, industries, and enterprises to innovate, scale, and operate with agility and resilience.
Aligned with Microsoft’s commitment to skill one million people in the UAE by 2027, the expansion unlocks opportunities for talent in AI, cloud, and services.
The partnership has established the Global Engineering Development Centre and the AI for Good Lab in Abu Dhabi. It continues to collaborate with government and institutions to ensure access to skills and foster the generation of leaders.
“This expansion is more than datacentres. Itโs about powering the UAEโs future. By combining Microsoft’s global expertise with G42โs local leadership and broadening role as an international neocloud enterprise, weโre building the foundation for innovation that will bring new opportunities to people across the country,” Brad Smith, Vice Chair and President of Microsoft said in a statement.
“Our partnership with Microsoft advances our mission to build the Intelligence Grid, the interconnected infrastructure for intelligence designed to empower people, industries, and nations in the AI era. As a neocloud enterprise born in Abu Dhabi, G42 is advancing systems that are sovereign, secure, and open to global collaboration, keeping technology human by design,” Peng Xiao, Group CEO of G42 added.
UAE strengthens position as regional leader in AI and cloud infrastructure
The expansion reinforces the UAE’s leadership in the region’s economy and builds on a series of efforts between Microsoft and G42, including the launch of the Responsible AI Foundation and the establishment of AI research centres in Abu Dhabi.
Together, Microsoft and G42 are building the backbone for a future defined by trust, excellence, and growth for all.
