Microsoft has announced a landmark investment of USD 15.2 billion in the United Arab Emirates to strengthen the country’s artificial intelligence and cloud infrastructure by 2029. The initiative deepens Microsoft’s strategic partnership with G42, a UAE-based AI holding company, and highlights the nation’s growing role as a hub for AI innovation in the region.
Strengthening the UAE’s AI Leadership
The multi-year plan builds on Microsoft’s commitment to support digital transformation across the Middle East. Through this investment, the company aims to:
- Expand AI and cloud computing infrastructure.
- Develop digital skills and local talent in emerging technologies.
- Foster collaboration between the UAE and the United States on AI innovation and governance.
Brad Smith, Vice Chair and President of Microsoft, emphasized that this project goes beyond technology. “Microsoft’s investment in the UAE is about people. By developing AI talent that reflects the region’s needs, we ensure the UAE remains at the forefront of responsible AI growth,” he said.
A Breakdown of Microsoft’s Investment
Since the program began in 2023, Microsoft has already invested over USD 7.3 billion in the UAE. This includes:
- USD 1.5 billion in G42 to strengthen AI partnerships and joint research.
- USD 4.6 billion in data centers to expand computing capacity.
- USD 1.2 billion in local operating expenses and support systems.
The company plans to invest another USD 7.9 billion between 2026 and 2029 to further boost its AI footprint. Planned allocations include:
- USD 5.5 billion for new AI and cloud facilities.
- USD 2.4 billion for operational growth and technology deployment.
Building a Responsible and Secure AI Ecosystem
Microsoft is working closely with both UAE and US authorities to ensure that all investments meet global cybersecurity, export control, and responsible AI standards. This collaboration aims to create a model for how advanced AI systems can be deployed safely and ethically while supporting national priorities.
The initiative also includes exporting advanced graphics processing units (GPUs) from the US to the UAE to power next-generation AI capabilities. These systems will support innovation in fields such as health, education, logistics, and sustainability.
A Long-Term Vision for the Region
This USD 15.2 billion plan cements Microsoft’s role as a long-term partner in the UAE’s journey toward becoming an AI-driven economy. The focus on skill development, infrastructure, and compliance reflects a balanced approach to technology growth—one that builds both capability and trust.
As the UAE continues its digital transformation, Microsoft’s sustained investment will help shape the region’s future, positioning it as a global leader in responsible AI development and deployment.