Microsoft Commits $15.2 Billion to Strengthen AI, Cloud Infrastructure in the UAE

Microsoft has announced plans to invest over $15 billion in the United Arab Emirates (UAE) by 2029, one of its biggest commitments in the Middle East. 

The investment will fund the expansion of advanced data centres, artificial intelligence infrastructure, and talent development programmes across the country.

According to Microsoft Vice Chair and President Brad Smith, the company’s focus is to meet the UAE’s surging demand for AI technology. “The biggest share of (the investment), by far, both looking back and looking forward, is the expansion of AI data centres across the UAE,” Smith told Reuters during the ADIPEC energy conference in Abu Dhabi. 

He added, “From our perspective, it’s an investment that is critical to meet the demand here for the use of AI.”

The new funding comes after Microsoft’s $1.5 billion equity investment in G42, Abu Dhabi’s sovereign AI company, last year, a deal that also gave the U.S. firm a board seat. 

G42 has faced some issues in Washington over previous ties with China, but Smith noted that the company had made “enormous progress” in aligning with U.S. legal and compliance standards.

Part of the funding will go towards providing Microsoft’s data centres with some of the most powerful chips available. Licences approved by both the Biden and Trump administrations now allow the company to export thousands of Nvidia GPUs to the UAE. 

Smith revealed that Microsoft currently holds the equivalent of 21,500 Nvidia A100 GPUs in the country, combining models such as A100, H100, and H200. More recently, approvals have been granted for an additional 60,400 A100-equivalent GB300 chips, which are expected to arrive within months.

Between 2023 and the end of this year, Microsoft will have spent $7.3 billion in the UAE. A further $7.9 billion is scheduled for deployment between 2026 and 2029, covering cloud expansion, data centre development, and local operating costs. 

None of this figure includes Microsoft’s involvement in Stargate UAE, a massive data hub announced earlier this year during U.S. President Donald Trump’s Gulf visit.

Smith, in a detailed post on Microsoft’s website, said the company’s approach in the UAE extends beyond technology. It includes driving local talent, building trust, and enhancing economic collaboration between the U.S. and the UAE. 

Microsoft’s workforce in the Emirates now includes nearly 1,000 employees of 40 nationalities, supported by a partner ecosystem of over 1,400 firms employing about 45,000 professionals nationwide.

The company recently established a Global Engineering Development Centre in Abu Dhabi and expanded its AI for Good Lab, focusing on research that benefits communities across Africa and the Middle East. Efforts include training language models for low-resource African languages and skilling one million people in the UAE by 2027.

In February, Microsoft and G42, alongside the Mohamed bin Zayed University of Artificial Intelligence, founded the Responsible AI Future Foundation (RAIFF) in Abu Dhabi to promote ethical AI standards across the Global South. 

The foundation’s work complements an Intergovernmental Assurance Agreement (IGAA), a framework developed with U.S. and UAE input to ensure compliance with American export, cybersecurity, and data protection laws.

“Talent is the engine of AI leadership,” Smith wrote. “Attracting, nurturing, and building AI talent and know-how is essential to the UAE turning its vision of becoming a global leader into a reality.”

With this investment in the UAE, Microsoft is linking American innovation with Emirati ambition through what Smith described as “technology, talent, and trust.”

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