Microsoft and global neocloud leader G42 are set to strengthen the UAE’s digital landscape with a 200-megawatt (MW) increase in datacenter capacity.
Following Microsoft’s recent announcement of a $15.2 billion investment in the UAE, the company is advancing its strategic partnership with G42 to accelerate national digital advancement. The organisations confirmed a 200MW expansion of datacenter capacity to be delivered by Khazna Data Centers, a G42 subsidiary. The new capacity is expected to begin coming online before the close of 2026, signalling an important step forward in supporting the UAE’s ambitions through trust, technology, and talent.
The expansion reflects a shared dedication to responsible innovation and security. Microsoft and G42’s collaboration continues to prioritise the highest standards of cybersecurity, data governance, and ethical artificial intelligence. The Responsible AI Future Foundation—jointly established by Microsoft, G42, and MBZUAI—serves as a global reference point for the development and oversight of responsible AI systems.
This additional 200MW capacity will provide enhanced AI-ready and cloud computing infrastructure, further reinforcing Microsoft Azure’s secure, scalable, and sovereign cloud capabilities in the UAE. The initiative supports the UAE’s national digital economy agenda, which aims to double the digital sector’s contribution to the economy within the next decade. High-performance GPUs and advanced AI tools will enable government entities, regulated sectors, and private companies to innovate, operate efficiently, and grow sustainably.
In line with Microsoft’s commitment to skill one million people in the UAE by 2027, this expansion opens new pathways for talent development in AI, cloud engineering, and digital services. Through the Global Engineering Development Center and the AI for Good Lab in Abu Dhabi, along with ongoing collaboration with education and government institutions, the partnership is working to ensure inclusive access to digital skills and nurture future technology leaders.
Brad Smith, Vice Chair and President of Microsoft, said:
“This expansion is more than datacenters. It’s about powering the UAE’s future. By combining Microsoft global expertise with G42’s local leadership and broadening role as an international neocloud enterprise, we’re building the foundation for innovation that will bring new opportunities to people across the country.
Peng Xiao, Group CEO of G42, added:
“Our partnership with Microsoft advances our mission to build the Intelligence Grid, the interconnected infrastructure for intelligence designed to empower people, industries, and nations in the AI era. As a neocloud enterprise born in Abu Dhabi, G42 is advancing systems that are sovereign, secure, and open to global collaboration, keeping technology human by design.”
This expansion reinforces the UAE’s leadership in the region’s digital economy and builds on a series of joint efforts between Microsoft and G42, including the launch of the Responsible AI Foundation and the establishment of AI research centers in Abu Dhabi. Together, Microsoft and G42 are building the digital backbone for a future defined by trust, technological excellence, and inclusive growth for all.