Abu dhabi: As part of Microsoft's $15.2 billion investment announcement in the UAE, Microsoft and G42 are deepening their strategic partnership to accelerate the nation's digital transformation. The two companies today announced a 200-megawatt (MW) expansion of datacenter capacity, delivered through Khazna Data Centres, a subsidiary of G42.
According to Emirates News Agency, this expansion is expected to start coming online before the end of 2026. This milestone marks the next chapter in empowering the UAE through trust, technology, and talent. The expansion is underpinned by a shared commitment to trust and responsible innovation. Microsoft and G42's partnership is grounded in the highest standards of cybersecurity, data protection, and ethical AI. The Responsible AI Future Foundation - established through a partnership between Microsoft, G42, and MBZUAI - serves as a global model for responsible AI development and governance.
The 200MW datacentre expansion will provide additional world-class AI and cloud infrastructure to the UAE, strengthening Microsoft Azure's secure, scalable, and sovereign cloud services. This partnership supports the UAE's national digital economy strategy, which aims to double the digital economy's contribution to GDP over the next decade. Advanced GPUs and AI capabilities will empower public sector organisations, regulated industries, and enterprises to innovate, scale, and operate with agility and resilience.
Aligned with Microsoft's commitment to skill one million people in the UAE by 2027, this expansion unlocks new opportunities for local talent in AI, cloud, and digital services. The partnership has already established the Global Engineering Development Centre and the AI for Good Lab in Abu Dhabi and continues to collaborate with government and educational institutions to ensure inclusive access to digital skills and foster the next generation of technology leaders.
Brad Smith, Vice Chair and President of Microsoft, noted that this expansion is about more than datacentres; it's about powering the UAE's future. By combining Microsoft's global expertise with G42's local leadership, the companies are building the foundation for innovation that will bring new opportunities to people across the country. Peng Xiao, Group CEO of G42, emphasized that the partnership advances their mission to build the Intelligence Grid, an interconnected infrastructure designed to empower people, industries, and nations in the AI era.
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 centres 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.