Microsoft Invests $15.2 Billion in UAE AI Infrastructure

Microsoft Corporation is investing a total of $15.2 billion in the United Arab Emirates between 2023 and 2029 to expand AI and cloud computing infrastructure. The commitment includes $7.3 billion already spent—including a $1.5 billion equity stake in state-backed AI firm G42—and an additional $7.9 billion planned through 2029. A significant portion of this funding is dedicated to data centers in Abu Dhabi and Dubai, including a 200-megawatt expansion delivered via G42 subsidiary Khazna Data Centres, with initial capacity expected by the end of 2026.

To power these facilities, the U.S. Department of Commerce granted Microsoft export licenses for approximately 81,900 advanced Nvidia GPUs, including GB300 models. This move, approved under the administration of President Donald Trump, is viewed as a strategic effort to establish a U.S.-aligned AI hub in the region, prompting G42 to divest from Chinese technology firms. The partnership also includes the Stargate data-center project, a joint venture between Microsoft, G42, and OpenAI.

Beyond infrastructure, Microsoft launched the Elevate UAE initiative to skill one million people by 2027. This program targets 250,000 students and educators, as well as 55,000 federal government employees. The company has also established a Global Engineering Development Centre and an AI for Good Lab in Abu Dhabi to support the UAE's national digital economy strategy.