Microsoft Announces In-Country Data Processing for Microsoft 365 Copilot in the UAE by 2026

Microsoft  today announced a strategic investment to enable local data processing for Microsoft 365 Copilot in the United Arab Emirates, exclusively for qualified UAE organizations. This milestone reinforces Microsoft’s commitment to supporting the UAE’s AI vision while helping ensure local processing, security, and regulatory compliance.

Microsoft will make this capability available in early 2026, hosted within Microsoft’s state-of-the-art cloud data centres in Dubai and Abu Dhabi, and will empower qualified customers to harness the transformative power of AI with confidence.

The announcement comes as the UAE continues to position itself as a global hub for AI innovation and governance. The country’s National Artificial Intelligence Strategy 2031, the Dubai Universal Blueprint for AI, and the establishment of the Chief Executive Officer for Artificial Intelligence role across ministries underscore the government’s commitment to responsible and in-country AI deployment.

“The UAE has always led with vision and ambition. Microsoft’s investment in in-country AI infrastructure is a testament to our shared commitment to building a future where innovation and trust go hand in hand. This move will empower our government entities to adopt AI confidently, knowing their data is protected and processed within our borders.”

-H.E. Omar Sultan Al Olama,  Minister of State for Artificial Intelligence, UAE

“We commend Microsoft’s proactive approach to enabling secure AI services. This investment supports our mission to create a resilient digital ecosystem and reinforces the UAE’s position as a leader in responsible AI. This collaboration plays a vital role in advancing our national cyber resilience by equipping organizations with secure and reliable digital solutions, this joint effort highlights the shared commitment between the public and private sectors to foster innovation while prioritizing security and trust. Together, we are laying the foundation for a digitally empowered and cyber-resilient ecosystem.”

-H.E. Dr. Mohamed Al Kuwaiti, Head of Cybersecurity, the UAE Government

By enabling in-country data processing for Microsoft 365 Copilot interactions in the UAE customers gain substantial advantages—including AI-driven productivity gains and enhanced regulatory compliance as all Copilot interaction data is securely stored and processed within the nation’s borders under normal operations. This approach also boosts performance through reduced latency. Microsoft 365 Copilot is fully compliant with the new AI Policy issued by the UAE Cyber security Council (CSC), ensuring adherence to national standards for responsible AI deployment and data governance.

 “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.”

-H.E. Mansoor Al Mansoori, CEO, G42 International

The deployment of Microsoft Copilot in regulated environments demonstrates a unified commitment to responsible AI implementation. Leveraging in-country data processing offers increased compliance and performance advantages. This initiative is being developed in close collaboration with Cyber Security Council (CSC) & DESC to ensure appropriate controls for regulated entities and alignment with local data protection, AI regulatory requirements, and governance frameworks.

“The introduction of Microsoft Copilot marks a pivotal moment in the UAE’s journey to accelerate AI adoption and digital excellence. As we embrace the monumental productivity gains of generative AI, our priority remains to ensure this innovation is deployed within a secure and trusted digital ecosystem. Copilot’s powerful capabilities will be consistently governed by the principles laid out in the Dubai AI Security Policy. DESC is committed to working in partnership with Microsoft to maintain the highest standards of data security and governance, reinforcing Dubai’s position as the safest city in cyberspace while enabling a new era of hyper-efficient government and business operations.”

-H.E. Yousuf Hamad Al Shaibani, Chief Executive, the Dubai Electronic Security Center (DESC)

“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.”

-Amr Kamel, General Manager, Microsoft UAE 

With over 152,000 new jobs projected from Microsoft’s cloud ecosystem and a commitment to skill one million UAE learners in AI by 2027, this announcement further cements Microsoft’s role as a trusted partner in the UAE’s digital transformation journey.