Microsoft and G42 have announced a 200 MW expansion of data center capacity in the United Arab Emirates. The project is part of Microsoft’s broader $15.2 billion investment to strengthen AI infrastructure, cloud computing, and talent development in the region.
Officials said the expansion will enhance the UAE’s digital ecosystem by providing more computing power for AI applications, cloud services, and enterprise solutions. The increased capacity is expected to support government, business, and research initiatives.
The investment will also create new opportunities for workforce development. Microsoft and G42 plan to train local talent in AI, cloud technologies, and data center operations, supporting the UAE’s vision of building a knowledge-based economy.
Analysts said the expansion reinforces the UAE’s position as a regional technology hub. With high-capacity data centers, the country can attract global tech companies, support innovation, and accelerate AI adoption across industries.
The 200 MW addition will include state-of-the-art facilities optimized for energy efficiency, sustainability, and high-performance computing. The centers are expected to support both enterprise clients and public-sector AI initiatives.
Microsoft highlighted that the project aligns with its global strategy to expand cloud and AI infrastructure while enabling local skill development. Partnerships like this aim to ensure that technology investment benefits communities and strengthens regional expertise.
G42 executives said the expansion will also support research and development. Advanced computing resources will allow scientists, engineers, and start-ups to run complex AI models, simulate scenarios, and develop innovative solutions.
The UAE government has encouraged such investments as part of its strategy to become a leader in AI, cloud technology, and digital services. Large-scale data centers are a cornerstone of this plan, providing the computing backbone for national and regional initiatives.
Industry experts noted that Microsoft’s commitment of $15.2 billion, which includes the G42 collaboration, positions the UAE as a competitive hub for AI research and enterprise adoption. The scale of the project reflects growing demand for advanced data infrastructure in the Middle East.
The initiative will also support regional sustainability goals. Modern data centers incorporate energy-saving technologies and renewable energy sources to reduce carbon emissions while delivering high performance.
Executives said the expansion will enable faster deployment of AI solutions, support cloud migration for businesses, and help governments leverage technology for smarter services.
The project reflects a broader trend of international tech companies partnering with local firms to expand AI and cloud infrastructure. Such collaborations combine global expertise with regional knowledge, fostering innovation and economic growth.
Microsoft and G42 emphasized that the investment is designed to deliver long-term benefits. By increasing data center capacity and training local talent, the UAE can support both economic diversification and technological leadership.
Overall, the expansion marks a significant milestone for AI and cloud computing in the Middle East. The new 200 MW data centers will enhance the UAE’s capacity to host advanced AI workloads, accelerate digital transformation, and strengthen its position in the global tech ecosystem.
