Post by : Badri Ariffin

The UAE is set to witness a major leap in its digital infrastructure as Microsoft and Abu Dhabi-based tech giant G42 unveil plans for a 200-megawatt (MW) expansion of datacentre capacity. The move, facilitated through Khazna Data Centres, is a key element of Microsoft’s $15.2 billion investment in the country and is expected to become operational before the end of 2026.

This expansion aims to provide world-class AI and cloud capabilities, strengthening Microsoft Azure’s secure, scalable, and sovereign cloud offerings in the UAE. Equipped with advanced GPUs and AI infrastructure, the new facilities will enable public sector organisations, regulated industries, and enterprises to innovate, scale, and operate with greater agility.

The partnership reflects a strong focus on trust, cybersecurity, and responsible innovation. A notable milestone in this collaboration is the Responsible AI Future Foundation, established with Microsoft, G42, and the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI). The foundation is designed to set global benchmarks for ethical AI development and governance.

Beyond technology, the initiative aims to bolster human capital in the UAE. Aligned with Microsoft’s goal to skill one million people in digital and AI technologies by 2027, the expansion is expected to create significant opportunities for local talent. Microsoft and G42 have already laid the groundwork through the Global Engineering Development Centre and AI for Good Lab in Abu Dhabi, while continuing collaborations with educational and governmental institutions.

The UAE’s broader vision to double the digital economy’s contribution to GDP over the next decade finds strong support through this initiative. By expanding cloud and AI capabilities, the country is positioning itself as a regional leader in digital transformation, capable of attracting investment and nurturing innovation across multiple sectors.

The 200MW datacentre expansion marks more than just increased computing capacity—it underscores the UAE’s commitment to creating a secure, sovereign, and innovation-driven digital ecosystem that benefits businesses, citizens, and the economy alike.

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