Microsoft and Abu Dhabi–based artificial intelligence group G42 have announced a major expansion of their cloud and digital infrastructure footprint in the United Arab Emirates, unveiling plans to add 200 megawatts (MW) of new data-centre capacity. The expansion will be delivered through Khazna Data Centers, a subsidiary of G42 and one of the region’s fastest-growing data-centre operators. The move marks another milestone in the UAE’s ambition to become a global hub for artificial intelligence, advanced cloud computing, and digital innovation.
The new 200 MW capacity is slated to come online by the end of 2026 and represents a substantial boost to the UAE’s rapidly developing digital ecosystem. For Microsoft, the expansion is part of its multibillion-dollar investment commitment in the country, focused on accelerating AI adoption, enabling sovereign cloud services, and supporting the UAE’s transformation into a regional centre for next-generation technologies. For G42, the partnership further strengthens its strategic position in scaling infrastructure that supports both local and global demand for AI workloads.
The additional capacity will enhance the availability and resilience of Microsoft Azure’s cloud services in the UAE. As AI models and data-intensive applications grow in size and complexity, reliable high-density computing infrastructure has become essential for government entities, regulated industries, and enterprise customers. The expansion ensures that the UAE can meet rising demand while maintaining strong data-sovereignty and cybersecurity standards.
A major theme of the collaboration is Microsoft and G42’s shared focus on responsible and ethical AI development. Both companies, in partnership with the Mohamed bin Zayed University of Artificial Intelligence, have previously established a dedicated foundation to guide AI safety, governance, and regulatory standards. The data-centre expansion is expected to support ongoing research, model training, and development initiatives aligned with these principles.
The project also complements the UAE’s National Strategy for Artificial Intelligence and its wider digital-economy ambitions. By increasing data-centre capacity, the UAE strengthens its ability to attract global technology firms, scale domestic innovation, and accelerate digital transformation across key sectors such as healthcare, energy, logistics, education, and financial services. The expansion will also support the country’s growing startup ecosystem, providing local companies with world-class infrastructure to build and deploy advanced AI solutions.
Sustainability remains a core component of the plan. Both Microsoft and G42 have highlighted their commitment to optimizing energy efficiency, adopting clean-energy solutions where possible, and designing infrastructure that aligns with long-term environmental goals. As the UAE continues to invest heavily in renewable power and green technologies, future data-centre projects are expected to increasingly integrate low-carbon energy sources.
The partnership between Microsoft and G42 reflects a broader global shift toward building larger, more advanced digital infrastructure to support the next wave of AI development. With the addition of 200 MW of capacity, the UAE solidifies its position as one of the most important digital infrastructure hubs in the Middle East and a key player in the global AI economy.
As demand for high-performance computing surges worldwide, the Microsoft–G42 collaboration positions the UAE at the forefront of technological progress, offering a foundation capable of powering innovation, economic diversification, and long-term digital competitiveness.Microsoft and G42 to Expand UAE Data Centre Capacity by 200 MW
