Microsoft, G42 Announce 200 MW Data-Centre Expansion in UAE

Microsoft and Abu Dhabi–based artificial intelligence company G42 have announced a major data center expansion project in the United Arab Emirates, adding 200 megawatts (MW) of new capacity under G42’s subsidiary, Khazna Data Centers. The expansion is part of Microsoft’s broader plan to deepen its presence in the Gulf region and strengthen local cloud and AI infrastructure.

According to the announcement, the new capacity is expected to come online by late 2026, marking one of the largest data center developments in the Middle East. The project is backed by Microsoft’s ongoing $15 billion investment program in the UAE, aimed at supporting cloud services, AI research, and technology ecosystem development.

This latest phase follows Microsoft’s strategic partnership with G42 earlier in 2025, focused on driving digital transformation and AI adoption across industries including finance, healthcare, and government services.

Analysis / Impact:
The move highlights the UAE’s growing ambition to become a global hub for cloud computing and artificial intelligence. With the addition of 200 MW capacity, the region is positioning itself as a strategic base for global data infrastructure, capable of supporting high-demand AI workloads and sovereign cloud operations.

For Microsoft, the partnership strengthens its foothold in the Middle East while enhancing its global AI computing network. For G42, it represents a significant step toward technological self-reliance and export-ready digital infrastructure.

Industry experts believe the expansion could attract more multinational tech investments into the UAE, accelerating the nation’s vision of becoming a leader in next-generation computing.