Microsoft & G42 Announce 200MW Data Center Expansion as Part of $15.2B UAE Investment

Microsoft has announced a new 200-megawatt datacenter project in partnership with G42, which is a part of former’s $15.2 billion investment in the UAE. The project, which will be delivered via G42’s subsidiary Khazna Data Centers, will start coming online before the end of 2026.

The expansion builds on Microsoft and G42’s long-term partnership focused on sovereign cloud, AI innovation, and cybersecurity. Both parties aim to provide world-class, secure, and scalable infrastructure to support the UAE’s national strategy to double its digital economy’s contribution to GDP over the next decade.

The decision is also in line with the work of the Responsible AI Future Foundation, which was launched jointly by Microsoft, G42, and MBZUAI. Besides infrastructure, the datacenter growth supports Microsoft’s goal of upskilling one million people in the UAE by 2027.

If you’re unaware, Microsoft has already opened the Global Engineering Development Center and the AI for Good Lab in Abu Dhabi.

“This expansion is more than datacenters. It’s about powering the UAE’s future,” said Brad Smith, Vice Chairman and President of Microsoft. “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,” he added.

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.”