In a significant move to bolster the UAE's digital infrastructure, Microsoft and Abu Dhabi-based tech group G42 on Wednesday announced a major expansion of data centre capacity in the country. The initiative, part of Microsoft's broader $15.2 billion investment in the UAE, will add 200 megawatts (MW) of new capacity through Khazna Data Centres, a G42 subsidiary. The new facilities are expected to begin operations before the end of 2026.

The expansion marks a deepening of the strategic partnership between the two companies, aimed at accelerating the UAE's digital transformation. It also reinforces the country's ambitions to double the digital economy's contribution to GDP over the next decade.

“This expansion is more than data centres. It's about powering the UAE's future,” said Brad Smith, Vice Chair and President of Microsoft.“By combining Microsoft's global expertise with G42's local leadership, we're laying the foundation for innovation that will bring new opportunities to people across the country.”

The new infrastructure will enhance Microsoft Azure's secure and scalable cloud services, offering advanced AI capabilities and GPU-powered computing to support public sector organisations, regulated industries, and enterprises. The companies emphasised that the initiative is grounded in principles of trust, cybersecurity, and ethical AI development.

G42's Group CEO Peng Xiao described the partnership as a step toward building the“Intelligence Grid” - a globally interconnected infrastructure designed to empower people and industries in the AI era.“As a neocloud enterprise born in Abu Dhabi, G42 is advancing systems that are sovereign, secure, and open to global collaboration,” Xiao said.

The collaboration also includes efforts to develop local talent. Microsoft has committed to skilling one million people in the UAE by 2027. The partnership has already led to the creation of the Global Engineering Development Center and the AI for Good Lab in Abu Dhabi, with ongoing work alongside government and educational institutions to promote inclusive access to digital skills.

This latest announcement builds on previous joint initiatives, including the launch of the Responsible AI Future Foundation - established with the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) - which serves as a global model for ethical AI governance.

Together, Microsoft and G42 are positioning the UAE as a regional leader in digital innovation, with a vision rooted in trust, technological excellence, and inclusive growth.

MENAFN05112025000049011007ID1110301013