Microsoft Deepens UAE AI Push with $15B Investment
The investment marks a new phase in Microsoft-UAE's bid to become a global AI powerhouse, deepening US–UAE technology collaboration.
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Microsoft plans to ramp up its total investment in the United Arab Emirates to $15 billion by the end of 2029, underscoring both the UAE’s ambitions to become a global artificial intelligence hub and Washington’s stance on technology exports to the Gulf.
“The biggest share of (the investment), by far, both looking back and looking forward, is the expansion of AI data centres across the UAE,” Microsoft Vice Chair and President Brad Smith said in an interview.
The announcement follows the Trump administration’s recent approval for Microsoft to export advanced Nvidia GPUs to power its UAE-based data centers. The company already holds licenses—initially approved under the Biden administration—to deploy the equivalent of 21,500 Nvidia A100 GPUs, with a subsequent round clearing exports for an additional 60,400 units of Nvidia’s newer GB300 GPUs. These chips are expected to arrive “in a matter of months,” Smith told Reuters.
Microsoft has been steadily expanding its presence in the UAE’s AI ecosystem. Last year, it invested $1.5 billion in Abu Dhabi-based G42, acquiring a minority stake and a board seat. The move marked a significant alignment between a major US technology company and one of the UAE’s most ambitious AI firms.
G42’s ties with China had previously raised concerns in Washington about potential access to advanced semiconductors. However, Smith emphasized that the firm has made “enormous progress” in aligning with the US compliance standards, including the safeguards governing AI research and deployment.
According to Smith, Microsoft will have invested $7.3 billion in the UAE starting 2023, with an additional $7.9 billion committed through 2029. The funding will support expansion of AI and cloud infrastructure, workforce training, and R&D programs designed to build local AI capabilities. None of the announced funds will be directed toward Stargate UAE, a separate large-scale data center initiative unveiled earlier this year.
During a briefing, H.H. Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, said Microsoft’s commitment demonstrates “global confidence in the UAE’s long-term economic vision to build a diversified, knowledge-based, and technology-driven economy.”
Smith framed the investment as part of Microsoft’s broader global strategy: “This is not money raised in the UAE. It’s money we’re spending in the UAE… focused not just on growing our business but also on contributing to the local economy through technology, talent, and trust.”
Khaldoon Khalifa Al Mubarak, Secretary-General of the Artificial Intelligence and Advanced Technology Council (AIATC), called the investment a key step in cementing Abu Dhabi’s position as a “global center for AI innovation,” reinforcing both economic diversification and the deepening US–UAE technology partnership.
