Microsoft and G42 Strengthen Strategic Alliance to Accelerate UAE’s AI and Cloud Transformation

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 announced a 200-megawatt (MW) expansion of datacenter capacity, delivered through Khazna Data Centers, a subsidiary of G42. 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.

This 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 datacenter 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 organizations, 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 Center 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.

“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.”

– Brad Smith, Vice Chair and President, Microsoft

“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.”

– Peng Xiao, Group CEO, G42

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.