Microsoft Enables In-Country Data Processing For Microsoft 365 Copilot In UAE

Microsoft has revealed a strategic investment to enable local data processing for Microsoft 365 Copilot in the UAE, targeting qualified organisations. This initiative supports the UAE's AI vision by ensuring local processing, security, and regulatory compliance.

The capability will be available in early 2026, hosted in Microsoft's advanced cloud data centres in Dubai and Abu Dhabi, empowering customers to confidently leverage AI.

The UAE is positioning itself as a global leader in AI innovation and governance. The National Artificial Intelligence Strategy 2031 and the Dubai Universal Blueprint for AI highlight this commitment.

The establishment of a Chief Executive Officer for Artificial Intelligence role across ministries further underscores the government's dedication to responsible AI deployment within the country.

Omar Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications, emphasised the UAE's ambition to shape the future through innovative ideas. He noted that partnering with Microsoft to develop sovereign AI infrastructure is crucial for realising the UAE’s vision of building a future based on global partnerships while empowering government entities to adopt AI responsibly.

Dr. Mohamed Al Kuwaiti, Head of Cybersecurity Council for the UAE Government, praised Microsoft's proactive role in enabling secure artificial intelligence services. He highlighted how these efforts align with the UAE's goals to build resilient digital systems, reinforcing its position as a global leader in responsible AI.

With in-country data processing for Microsoft 365 Copilot interactions, UAE customers benefit from productivity gains and improved regulatory compliance. All interaction data is securely stored and processed within national borders under normal operations. This approach enhances performance by reducing latency and ensures compliance with the new AI Policy issued by the UAE Cybersecurity Council (CSC).

Mansoor Al Mansoori, CEO of G42 International, stated: "As Microsoft's strategic partner and the leading AI enabler for UAE government, G42 is proud to support this significant step forward in AI innovation. With this move, we are jointly positioned to help drive secure AI adoption across the UAE, empowering government entities to innovate confidently while maintaining the highest standards of data integrity and regulatory compliance."

This initiative is being developed alongside the Cyber Security Council and Dubai Electronic Security Centre (DESC) to ensure regulated entities comply with local data protection requirements. Yousuf Hamad Al Shaibani, Chief Executive of DESC, commented on embracing generative AI's productivity gains while ensuring deployment within a secure digital ecosystem.

Amr Kamel, General Manager of Microsoft UAE, remarked: "This is a pivotal moment in our partnership with the UAE. By enabling in-country processing for Copilot, we are not only accelerating AI adoption across the public sector but also ensuring that Copilot interactions are stored and processed within national borders—aligned with the UAE’s digital goals. We are proud to support the UAE’s leadership in shaping a secure, responsible, and inclusive AI future."

The announcement strengthens Microsoft's role as a trusted partner in the UAE's digital transformation journey. With over 152,000 new jobs expected from Microsoft's cloud ecosystem and plans to skill one million learners in AI by 2027, this initiative cements Microsoft's commitment to supporting technological advancement in the region.

With inputs from WAM