The expansion is expected to be operational by the end of 2026. This milestone marks the next chapter in empowering the UAE through trust, technology and talent.
As part of Microsoft’s $15.2 billion investment announcement in the UAE, Microsoft and G42 We are deepening our strategic partnerships to accelerate the country’s digital transformation. The companies announced a 200 megawatt (MW) expansion in data center capacity through Khazna Data Centers, a subsidiary of G42. The expansion is expected to be operational by the end of 2026. This milestone marks the next chapter in empowering the UAE through trust, technology and talent.
This expansion is underpinned by a shared commitment to trust and responsible innovation. Microsoft and G42’s partnership is built on the highest standards of cybersecurity, data protection, and ethical AI. Founded through a partnership between Microsoft, G42, and MBZUAI, the Responsible AI Future Foundation serves as a global model for responsible AI development and governance.
The 200MW data center expansion will provide additional world-class AI and cloud infrastructure to the UAE, enhancing Microsoft Azure’s secure, scalable, sovereign cloud offering. The partnership supports the UAE’s National Digital Economy Strategy, which aims to double the digital economy’s contribution to GDP over the next decade. Advanced GPU and AI capabilities enable public sector organizations, regulated industries, and enterprises to innovate, scale, and operate with agility and resilience.
In line with Microsoft’s commitment to skill one million people in the UAE by 2027, this expansion opens new opportunities for local talent in AI, cloud, and digital services. The partnership has already established a Global Engineering Development Center and AI for Good Lab in Abu Dhabi and will continue to work with governments and educational institutions to ensure inclusive access to digital skills and develop the next generation of technology leaders.
“This expansion is more than just a data center; it strengthens the UAE’s future. By combining Microsoft’s global expertise with G42’s local leadership and expanding our role as an international neo-cloud company, we are building a foundation for innovation that will create new opportunities for people across the country.”
– Brad Smith, Vice Chairman and President, Microsoft
“Our partnership with Microsoft advances our mission to build the Intelligence Grid, an interconnected infrastructure for intelligence designed to empower people, industries, and nations in the age of AI. As an Abu Dhabi-born neo-cloud company, G42 promotes systems that are sovereign, secure, and open to global collaboration, keeping technology humane by design.”
– Mr. Peng Xiao, G42 Group CEO
This expansion strengthens the UAE’s leadership in the region’s digital economy and builds on a series of joint initiatives between Microsoft and G42, including the launch of the Responsible AI Foundation and the establishment of an AI research center in Abu Dhabi. Together, Microsoft and G42 are building the digital backbone for a future defined by trust, technological excellence, and inclusive growth for everyone.
