In a landmark initiative to strengthen the UAE’s digital infrastructure, Microsoft and Abu Dhabi-based technology conglomerate G42 have unveiled a significant expansion of data centre capacity in the region. Announced on November 5, 2025, the project is part of Microsoft’s broader $15.2 billion investment in the UAE and will add 200 megawatts (MW) of new capacity through Khazna Data Centres, a subsidiary of G42. The new facilities are slated to become operational by the end of 2026. This expansion underscores the deepening strategic partnership between the two companies, aimed at accelerating the UAE’s digital transformation and doubling the digital economy’s contribution to the nation’s GDP over the next decade. Brad Smith, Vice Chair and President of Microsoft, highlighted the initiative’s broader significance, stating, “This expansion is more than data centres. It’s about powering the UAE’s future.” The enhanced infrastructure will bolster Microsoft Azure’s cloud services, offering advanced AI capabilities and GPU-powered computing to support public sector organisations, regulated industries, and enterprises. The collaboration emphasises trust, cybersecurity, and ethical AI development. Peng Xiao, Group CEO of G42, described the partnership as a step toward building the “Intelligence Grid,” a globally interconnected infrastructure designed to empower industries and individuals in the AI era. The initiative also includes a commitment to developing local talent, with Microsoft pledging to skill one million people in the UAE by 2027. Previous joint efforts, such as the establishment of the Responsible AI Future Foundation, further solidify the UAE’s position as a regional leader in digital innovation.
Microsoft and G42 unveil major data centre expansion to power UAE’s digital future
