UAE’s AI firm G42 partnered with Microsoft to add 200 MW of data center capacity through its subsidiary Khazna Data Centers, serving as part of the US tech giant’s plan to invest USD 15.2 bn in the UAE between 2023 and 2029, according to a press release. This upgrade is expected to come online before the end of 2026.

We knew this was in the works: Microsoft and its partners previously announced their intention to invest USD 5.1 bn in the UAE’s data center regions over the next four years, in an agreement that built on an earlier USD 1.5 bn investment in G42.

It’s all part of a bigger plan: Microsoft plans to spend more than USD 7.9 bn in the UAE between 2026 and 2029. This includes over USD 5.5 bn in capital expenses for the ongoing and planned expansion of its AI and cloud infrastructure. The firm invested over USD 7.3 bn in the country so far, with over USD 4.6 bn dedicated to advanced AI and cloud data centers.

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