UAE Accelerates AI Growth With Major Data Center Expansion

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The UAE is set to strengthen its position as a regional digital powerhouse with Microsoft and Abu Dhabi’s G42 announcing a significant expansion of their cloud and AI infrastructure. The companies revealed plans to add 200 megawatts of new data center capacity, supporting the country’s growing demand for artificial intelligence, enterprise cloud services, and high-performance computing.

The move is part of a wider regional tech investment initiative valued at $15 billion, backed by Abu Dhabi’s sovereign wealth ecosystem and global technology partners. Microsoft alone is expected to invest $7.3 billion in the UAE by the end of 2025, with an additional $7.9 billion projected for the 2026–2029 period. Nvidia’s export clearance for advanced AI chips has further enabled the expansion.

The new capacity will boost the UAE’s ability to host large-scale AI models, serve enterprise clients, and support digital transformation across finance, energy, logistics, and government sectors. For professionals in digital services, cyber security, and cloud operations, the expansion signals strong job creation and new opportunities in one of the world’s fastest-growing data hubs.