Microsoft and G42 announce 200-megawatt data center expansion in UAE

Published 05/11/2025, 12:26
© Reuters.

Investing.com -- Microsoft and Abu Dhabi’s G42 announced a 200-megawatt expansion of data center capacity in the United Arab Emirates on Wednesday, as part of an over $15 billion investment commitment by the U.S. tech giant in the Gulf country.

The expansion will be delivered through Khazna Data Centers, a G42 unit, and is expected to begin operations before the end of 2026, according to a joint statement from the two companies.

Microsoft revealed earlier this week that its investment in the UAE will reach $7.3 billion between 2023 and the end of 2025, with an additional $7.9 billion planned for 2026-2029.

The company also announced that President Donald Trump’s administration had approved the export of advanced NASDAQ:NVDA chips for its data centers in the UAE, which has been investing billions to establish itself as a global AI hub.

According to the joint statement, the expansion will provide additional AI and cloud infrastructure to the UAE, "strengthening Microsoft Azure’s secure, scalable, and sovereign cloud services."

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