Microsoft and G42 are set to enhance the UAE’s digital infrastructure with a 200-megawatt (MW) boost in datacenter capacity.
Building on Microsoft’s $15.2 billion UAE investment commitment, the company is expanding its strategic collaboration with G42 to accelerate the UAE’s digital transformation. Both organisations confirmed a 200MW datacenter expansion to be delivered via Khazna Data Centers, a subsidiary of G42. The first stages of this expanded capacity are expected to come online by the end of 2026, representing a notable step in strengthening the nation’s technology landscape.
The initiative is driven by a mutual focus on secure and responsible innovation. The partnership emphasises strong safeguards for cybersecurity, data privacy, and ethical artificial intelligence. The Responsible AI Future Foundation—created by Microsoft, G42, and MBZUAI—continues to serve as a global leader for responsible AI governance and development.
The new 200MW capacity will reinforce the UAE’s access to cutting-edge AI, GPU, and cloud infrastructure, enhancing Microsoft Azure’s sovereign, scalable, and secure cloud environment. The effort aligns with the UAE’s overarching mission to substantially grow the contribution of the digital economy to national GDP over the next decade. Public institutions, regulated sectors, and businesses will be better positioned to modernise, innovate, and operate efficiently.
Supporting Microsoft’s initiative to train one million individuals in the UAE by 2027, the expansion will fuel local talent development in AI, cloud architecture, and technology services. The collaboration has already delivered key initiatives such as the Global Engineering Development Center and the AI for Good Lab in Abu Dhabi, and continues to work with academia and government to empower future technology leaders.
Brad Smith, Vice Chair and President of Microsoft, said:
“This expansion is more than datacenters. It’s about powering the UAE’s future. By combining Microsoft 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, added:
“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 expansion reinforces the UAE’s leadership in the region’s digital economy and builds on a series of joint efforts between Microsoft and G42, including the launch of the Responsible AI Foundation and the establishment of AI research centers in Abu Dhabi. Together, Microsoft and G42 are building the digital backbone for a future defined by trust, technological excellence, and inclusive growth for all.
