Microsoft, G42 Announce Major UAE Data Centre Expansion
The expansion adds 200 megawatts of capacity through Khazna Data Centers, marking a key step in the UAE’s AI ecosystem.
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Microsoft and Abu Dhabi-based G42 have announced plans to expand data centre capacity in the UAE by 200 megawatts, forming part of the US tech giant’s broader $15 billion investment commitment in the region. As per a joint statement, the new capacity will be built and operated by Khazna Data Centers, a G42 subsidiary, with operations expected to begin before the end of next year.
Microsoft noted that its total investment in the UAE will reach $7.3 billion by the close of 2025, with an additional $7.9 billion set aside for the period from 2026 to 2029.
The company also confirmed that the Trump administration has approved the export of advanced Nvidia chips for use in data centres across the Gulf nation, which continues to channel billions into its ambition of becoming a global artificial intelligence hub.
Microsoft has been steadily expanding its presence in the UAE’s AI landscape. Last year, the company acquired a minority stake in G42 through a $1.5 billion investment. G42 is also supported by Silver Lake, the Abu Dhabi sovereign wealth fund Mubadala, and the family office of billionaire investor Ray Dalio.
The latest expansion aims to enhance the UAE’s AI and cloud infrastructure landscape, further reinforcing Microsoft Azure’s secure, scalable, and locally sovereign cloud offerings, the companies said.
During a recent briefing, H.H. Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, mentioned that Microsoft’s commitment demonstrates “global confidence in the UAE’s long-term economic vision to build a diversified, knowledge-based, and technology-driven economy.”
