Microsoft and G42 will expand UAE data center capacity by 200 megawatts as part of Microsoft's $15 billion regional investment.

Microsoft and Abu Dhabi's G42 on Wednesday announced a 200-megawatt expansion of data centre capacity in the United Arab Emirates as part of an over $15 billion investment commitment by the U.S. tech giant in the Gulf country.

Microsoft’s decade-long investment in the United Arab Emirates underscores its commitment to building a robust artificial intelligence ecosystem, advancing digital infrastructure and fostering local talent through a strategic partnership with G42.

US tech giant Microsoft on Monday announced $15.2 billion in investments in artificial intelligence and cloud computing in the United Arab Emirates.

By the end of 2024, Microsoft will have already spent $7.3 billion in the UAE, including a $1.5 billion equity stake in G42 and over $4.6 billion on AI and cloud data centers. A further $7.9 billion will be spent between 2026 and 2029, much of it directed toward expanding advanced cloud capacity and AI compute power.

In 2023, Microsoft partnered with an Abu Dhabi-based company called Group42 to grow its UAE data center presence. The tech giant disclosed today that it will have invested more than $7.3 billion in the partnership by the end of the year. Over half the sum was allocated to capital expenditures, a line item that includes data center infrastructure.

Microsoft said it would spend nearly $8 billion on artificial-intelligence projects in the United Arab Emirates over the next four years, reiterating its commitment to build data centers in the Middle East.

The announcement is part of Microsoft's ongoing efforts to enhance governance, security and performance for government bodies and highly regulated industries by ensuring user data is processed and stored locally.