Microsoft and G42 have announced a significant expansion of their strategic partnership to accelerate the UAE’s digital transformation. As part of Microsoft’s $15.2 billion investment in the country, the two companies revealed a 200-megawatt (MW) increase in data center capacity, which will be implemented by Khazna Data Centers, a subsidiary of G42.
This expansion is projected to begin coming online before the end of 2026, marking a pivotal step in strengthening the UAE’s digital infrastructure through enhanced trust, advanced technology, and the development of local talent.
Brad Smith, vice chair and president of Microsoft, emphasized the broader purpose of the initiative, stating:
“This expansion is more than datacenters. It’s about powering the UAE’s future. By combining Microsoft’s global expertise with G42’s local leadership and growing role as an international neocloud enterprise, we are creating the foundation for innovation that will unlock new opportunities across the nation.”
Boosting Microsoft Azure’s Sovereign Cloud Capabilities
This initiative underscores a shared commitment to responsible innovation and data security. The partnership between Microsoft and G42 prioritizes the highest standards of cybersecurity, data privacy, and ethical AI development. A key outcome of this dedication is the Responsible AI Future Foundation, established in collaboration with MBZUAI, which sets a global benchmark for ethical AI governance.
The 200MW data center expansion will deliver premier AI and cloud infrastructure in the UAE, further enhancing Microsoft Azure’s resilient, scalable, and sovereign cloud services. This supports the UAE’s national digital economy agenda, which aims to double the sector’s contribution to GDP in the next 10 years. The deployment of advanced GPUs and AI capabilities will enable public sector institutions, regulated industries, and private enterprises to operate with increased speed, flexibility, and innovation.
Peng Xiao, group CEO of G42, highlighted the strategic vision behind the initiative, saying:
“Our partnership with Microsoft advances our mission to build the Intelligence Grid – a secure, sovereign, and globally collaborative infrastructure designed for the AI era. As a neocloud enterprise originating in Abu Dhabi, G42 is committed to developing technology that puts humanity first.”
Creating New Opportunities for AI and Digital Talent in the UAE
Aligned with Microsoft’s goal to train one million individuals in the UAE by 2027, this expansion will open up new career pathways in cloud computing, AI, and other digital fields. The collaboration has already led to the creation of the Global Engineering Development Center and the AI for Good Lab in Abu Dhabi, with continued initiatives in partnership with local universities and government bodies to expand digital literacy and empower future tech leaders.
This expansion solidifies the UAE’s leadership in the Middle East’s digital economy and builds on a series of successful collaborations between the two companies, including the establishment of responsible AI frameworks and AI research hubs in Abu Dhabi. Together, Microsoft and G42 are laying the groundwork for a future built on trust, technological innovation, and inclusive growth for all.
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