Abu Dhabi, UAE | November 5th, 2025
Microsoft and G42 have announced a massive investment of $15.2 billion to expand the UAE’s data center capacity and strengthen artificial intelligence (AI) infrastructure. The long-term partnership aims to position the country as a leading hub for digital transformation and cloud innovation in the Middle East.
According to Microsoft Vice Chair and President Brad Smith, the $15.2 billion figure includes over $7.3 billion already spent since 2023 and an additional $7.9 billion planned between 2026 and 2029. The project covers both equity investment and large-scale infrastructure spending to expand AI-enabled data centers across the country.
Breakdown of the initial investment includes:
- $1.5 billion equity stake in G42
- $4.6 billion for AI and cloud data centers infrastructure
- $1.2 billion in local operating costs and supply chain spending
From 2026 to 2029, Microsoft plans to allocate $7.9 billion, with $5.5 billion for further infrastructure development and $2.4 billion for operational and related costs. The expanded network of UAE data centers will deliver cloud services and AI solutions to local industries, governments, and start-ups.
Developing Talent and Building the Local Ecosystem
Brad Smith noted that the initiative reflects Microsoft’s commitment to both economic growth and skills development. “This is not money raised in the UAE. It’s money we’re spending in the UAE. And as we do everywhere in the world, we’re focused not just on growing our business but also on contributing to the local economy,” he said.
Microsoft also announced plans to train one million people in the UAE by 2027, focusing on government workers, students, and teachers. In addition, a new Global Engineering Development Centre and AI for Good Lab in Abu Dhabi will serve as regional hubs for innovation, bringing together engineers and researchers from over 40 nationalities.
Governance and Responsible AI
As part of the UAE data center expansion, Microsoft and G42 have agreed to align their operations with U.S. standards for cybersecurity, export controls, and data protection. The companies have signed an Intergovernmental Assurance Agreement (IGAA) and co-founded the Responsible AI Future Foundation to promote transparent and ethical technology use.
To support large-scale AI workloads, the partnership will include the deployment of advanced Nvidia A100, H100, H200, and GB300 GPUs approved for export to the UAE. These chips will be critical to powering next-generation cloud and AI services across the region.
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Strengthening the UAE’s Position in Global Tech
The investment underscores the UAE’s ambition to become a global leader in AI and digital infrastructure. Microsoft cited the UAE’s high adoption of generative AI tools, with more than 59 percent of residents already using AI-driven applications in daily life.
For the region, the expansion is expected to drive economic diversification, enhance data sovereignty, and open new opportunities for public-private partnerships in cloud services and digital education.
The $15.2 billion collaboration between Microsoft and G42 stands as one of the largest technology infrastructure commitments in the Middle East. With its focus on data center expansion, talent development, and responsible AI governance, the initiative strengthens the UAE’s role as a global hub for innovation and sets a model for how international tech partnerships can accelerate regional digital growth.
