Microsoft and Abu Dhabi-based G42 will expand data center capacity in the United Arab Emirates by 200 megawatts, part of Microsoft’s ongoing $15 billion investment in the Gulf region. The project will be executed through G42’s subsidiary, Khazna Data Centers, and is set to go online by the end of next year.
The expansion will significantly enhance the UAE’s AI and cloud infrastructure, strengthening Microsoft Azure’s local footprint. Microsoft’s total investment in the UAE is expected to reach $7.3 billion by 2025 and a further $7.9 billion from 2026 to 2029.
The announcement follows the U.S. government’s approval for Microsoft to use Nvidia’s advanced AI chips in its regional data centers — a key enabler for large-scale AI applications. G42, which counts Mubadala, Silver Lake, and Ray Dalio’s family office among its backers, is central to the UAE’s vision of becoming a global AI powerhouse.
Microsoft invested $1.5 billion in G42 last year, solidifying a strategic partnership aimed at scaling sovereign cloud services and advancing AI innovation across the Middle East.
