Dubai, UAE – Microsoft (MSFT.O) and Abu Dhabi-based G42 announced a 200-megawatt expansion of data center capacity in the United Arab Emirates, part of the U.S. tech giant’s over $15 billion investment commitment in the Gulf country.

The expansion will be implemented through Khazna Data Centers, a G42 unit, and is expected to begin operations before the end of 2026. The project aims to strengthen AI and cloud infrastructure in the UAE, enhancing Microsoft Azure’s secure, scalable, and sovereign cloud services.

Investment Details and Strategic Partnerships

Microsoft’s total investment in the UAE will reach $7.3 billion by the end of 2025, with an additional $7.9 billion planned between 2026 and 2029. Last year, Microsoft invested $1.5 billion to acquire a minority stake in G42, which is supported by Abu Dhabi’s sovereign wealth fund Mubadala, private equity firm Silver Lake, and billionaire Ray Dalio’s family office.

The expansion follows approval from the Trump administration for exporting advanced Nvidia chips to the UAE, supporting the Gulf nation’s ambition to become a global AI hub.

Driving Cloud and AI Growth in the Middle East

The new data center capacity will bolster Microsoft Azure’s AI and cloud services, supporting businesses and government entities in the UAE with advanced, secure, and scalable computing infrastructure. This investment underscores the UAE’s growing role as a regional leader in AI and cloud technology.