UAE’s G42 and Microsoft Launch $15.2B Data Center Expansion

A major $15.2 billion strategic partnership between Microsoft and G42 is set to dramatically expand the United Arab Emirates’ digital infrastructure with a new 200-megawatt data center initiative. This substantial investment, channeled through G42’s subsidiary Khazna Data Centers, aims to accelerate the nation’s digital transformation and is projected to begin operations before the close of 2026.

The collaboration represents a significant deepening of ties between the global technology leader and the Abu Dhabi-based AI and cloud computing company. Brad Smith, Vice Chair and President of Microsoft, emphasized the project’s broader vision, stating that it goes beyond physical infrastructure to actively power the UAE’s future. He highlighted that merging Microsoft’s worldwide expertise with G42’s regional leadership creates a powerful foundation for innovation, ultimately generating new opportunities for citizens across the country.

Central to this expansion is the reinforcement of Microsoft Azure’s sovereign cloud services, ensuring the highest standards of data security, privacy, and compliance for UAE organizations. The initiative is built upon a shared commitment to responsible innovation, with cybersecurity and ethical AI principles at its core. A key component of this effort is the Responsible AI Future Foundation, established by Microsoft, G42, and MBZUAI, which serves as a global benchmark for the conscientious development and governance of artificial intelligence technologies.

This advanced infrastructure will deliver world-class AI and cloud capabilities, equipping public sector entities, regulated industries, and private enterprises with the tools needed to innovate, scale their operations, and enhance their agility. The partnership directly supports the UAE’s national strategy to double the digital economy’s contribution to its GDP within the next ten years. Peng Xiao, Group CEO of G42, described the project as a critical step in building the “Intelligence Grid,” an interconnected infrastructure designed to empower individuals, industries, and nations in the AI era, with a focus on systems that are sovereign, secure, and open to global collaboration.

A crucial aspect of the initiative is its focus on cultivating local talent in AI and cloud technologies. Aligned with Microsoft’s ambitious goal to skill one million people in the UAE by 2027, the expansion will unlock significant career opportunities in high-demand digital fields. The partnership has already led to the creation of the Global Engineering Development Center and the AI for Good Lab in Abu Dhabi. Ongoing collaborations with government bodies and educational institutions are ensuring inclusive access to digital skills development, helping to nurture the next generation of technology leaders in the region.

This data center expansion further solidifies the UAE’s position as a leader in the regional digital economy. It builds upon a series of previous joint efforts, including the launch of the Responsible AI Foundation and the establishment of specialized AI research centers. Together, Microsoft and G42 are constructing a robust digital backbone intended to foster a future defined by technological excellence, trust, and inclusive growth for the entire nation.

(Source: Economy Middle East)