UAE's Digital Transformation Accelerates with Microsoft and G42 Datacenter Growth
* Microsoft and G42 will expand the UAE's digital capacity with an additional 200 megawatts (MW) of datacenter infrastructure.
As part of Microsoft's $15.2 billion investment in the UAE, the company has strengthened its strategic partnership with G42 to support the UAE's digital progress. The two organisations announced the expansion of datacenter capacity by 200MW through Khazna Data Centers, part of the G42 group. The expanded facilities are expected to begin phased activation from late 2026, marking a major milestone in advancing technology, trust, and local capability.
The collaboration is founded on a joint commitment to responsible and secure innovation. Microsoft and G42 uphold rigorous cybersecurity and data protection frameworks, alongside ethical approaches to artificial intelligence. The Responsible AI Future Foundation--formed by Microsoft, G42, and MBZUAI--continues to guide responsible AI innovation at a global scale.
With the additional 200MW, the UAE will benefit from enhanced world-class cloud and AI infrastructure, further strengthening Microsoft Azure's sovereign cloud offering. The expansion directly supports the UAE's national objective to increase the digital economy's share of GDP significantly within the next ten years. Advanced AI systems and GPU-powered computing will allow organisations across government and key industries to achieve greater agility, efficiency, and innovation.
Aligned with Microsoft's goal of equipping one million UAE residents with digital skills by 2027, the expansion will boost opportunities for careers in AI, cloud computing, and software engineering. The partnership has already launched the Global Engineering Development Center and the AI for Good Lab in Abu Dhabi, and continues to work with educational institutions to develop a strong pipeline of future-ready technology talent.
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.
source:newsreleases.co.uk
Published in
Internet Business News
on Wednesday, 05 November 2025
Copyright (C) 2025, M2 Communications Ltd.
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