Du is building a AED 2 bn hyperscale data center in the UAE for Microsoft, which will be its main tenant, according to a DFM disclosure (pdf). The center — whose capacity is set to be delivered in phases — aims to enhance the region’s AI capabilities and sovereign cloud solutions, and address growing capacity needs, Fahad Al Hassawi, CEO of du said.

Building on previous collabs: The pair have a few other collaborations going on, including their joint launch of AI-driven cybersecurity solutions for UAE enterprises that saw Du integrate Microsoft’s real-time solutions in its systems and services. The pair also introduced Ultimate Plans — a suite of digital solutions designed for small and medium-sized businesses (SMEs).

Du’s current stocktake: The state-owned telecoms firm currently operates five data centers across the UAE, according to Reuters.

REMEMBER- Microsoft is doubling down on the UAE: The tech giant is investing USD 1.5 bn in G42 to help boost its global expansion plans and promote the UAE’s position as a global AI hub. The sizable investment included setting up two AI centers in Abu Dhabi and accelerating AI-driven government transformation in the emirate.