Microsoft And G42 Expand Data Centre Capacity To Boost UAE's Digital Transformation Efforts

Microsoft has announced a $15.2 billion investment in the UAE, strengthening its partnership with G42 to boost the country's digital transformation. A key part of this initiative is a 200-megawatt datacentre expansion through Khazna Data Centres, a G42 subsidiary. This development is set to begin operations by the end of 2026, marking a significant step in enhancing UAE's technological landscape.

The collaboration between Microsoft and G42 is built on trust and responsible innovation, focusing on cybersecurity, data protection, and ethical AI standards. The Responsible AI Future Foundation, formed with MBZUAI, exemplifies this commitment to responsible AI governance. This expansion will enhance Microsoft Azure's cloud services in the UAE, supporting the national strategy to double the digital economy's GDP contribution over the next decade.

The new datacentre will offer advanced AI and cloud infrastructure, empowering public sector organisations and industries to innovate and operate efficiently. This aligns with Microsoft's goal to skill one million people in the UAE by 2027, creating opportunities for local talent in AI and digital services. The partnership has already led to initiatives like the Global Engineering Development Centre and AI for Good Lab in Abu Dhabi.

Brad Smith, Vice Chair and President of Microsoft, highlighted the broader impact of this expansion: "This expansion is more than datacentres. It’s about powering the UAE’s future. By combining Microsoft's global expertise with G42’s local leadership and broadening role as an international neocloud enterprise, we’re building the foundation for innovation that will bring new opportunities to people across the country."

Peng Xiao, Group CEO of G42, expressed that their collaboration with Microsoft furthers their mission to create an interconnected intelligence infrastructure: "Our partnership with Microsoft advances our mission to build the Intelligence Grid, the interconnected infrastructure for intelligence designed to empower people, industries, and nations in the AI era. As a neocloud enterprise born in Abu Dhabi, G42 is advancing systems that are sovereign, secure, and open to global collaboration, keeping technology human by design."

This strategic move reinforces UAE's position as a leader in the region's digital economy. It builds on previous joint efforts between Microsoft and G42 such as launching the Responsible AI Foundation and establishing AI research centres in Abu Dhabi. Together they aim to create a digital backbone defined by trust and technological excellence.

The expanded datacentre capacity will provide world-class infrastructure for AI and cloud services across various sectors. This development supports UAE's ambition to enhance its digital economy significantly over ten years while fostering inclusive growth through technology.

With inputs from WAM