Microsoft and G42 expand UAE data-centre capacity
Microsoft and Abu Dhabi-based G42 will expand data-centre capacity in the UAE by 200 megawatts, with operations expected to begin by late 2026. The $15 billion regional investment aims to transform the Gulf into a global AI and cloud computing hub.
The project includes approval for exporting advanced Nvidia chips to support the new infrastructure and reflects Microsoft’s broader effort to extend its Azure platform across secure, sovereign-cloud services.
G42’s Khazna Data Centers unit will lead the project’s development. Analysts say the initiative demonstrates rising global demand for AI computing power and the region’s ambition to diversify beyond oil. It may reshape Gulf job markets, skill development, and regulatory frameworks, setting a new model for digital infrastructure partnerships between East and West.
