UAE to become key hub in Microsoft’s global AI expansion

Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan has reviewed Microsoft’s plans to invest US$15.2 billion in the UAE by 2029, a move aimed at accelerating artificial intelligence (AI) innovation, expanding cloud infrastructure and nurturing local digital talent, WAM reported.

The initiative, launched in 2023, underscores the UAE’s growing role as a global technology hub and highlights Washington’s deepening digital partnership with Abu Dhabi.

During a meeting with Sheikh Khaled, Microsoft Vice Chair and President Brad Smith outlined the company’s roadmap for expanding its AI capabilities, building data centers and rolling out large-scale training and research programs to upskill Emiratis.

Sheikh Khaled said the investment reflected “global confidence in the UAE’s long-term vision” to create a diversified, knowledge-based economy driven by innovation.

Smith described the move as “an investment in the UAE, not from the UAE,” adding that Microsoft’s focus was on combining “technology, talent and trust” to ensure AI development benefits local communities.

Between 2023 and 2029, Microsoft will channel US$15.2 billion into the country - $7.3 billion by the end of 2025 and $7.9 billion from 2026 onward. This includes a $1.5 billion equity stake in G42, more than $10 billion in capital spending on advanced AI and cloud data centers, and $3.6 billion in local operating costs.

The company has also obtained export licenses to bring advanced NVIDIA A100, H100 and H200 GPUs to the UAE - over 80,000 chips in total - to power Azure AI services and strengthen local innovation.

Khaldoon Khalifa Al Mubarak, Secretary-General of the Artificial Intelligence and Advanced Technology Council, said the UAE was “embedding AI into every part of government, society and the economy,” adding that the partnership reflects the shared UAE-US commitment to sustainable and inclusive growth.

Peng Xiao, CEO of G42, said the collaboration “goes beyond ambition - it’s about delivery and impact,” describing it as a model for cross-border cooperation based on trust and shared technological progress.

Microsoft’s investment will also bolster the country’s AI ecosystem. The company has opened a Global Engineering Development Center and the AI for Good Lab in Abu Dhabi, and pledged to train one million people in the UAE by 2027, including 120,000 government employees, 175,000 students and 39,000 teachers.

In partnership with G42 and the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), Microsoft co-founded the Responsible AI Future Foundation this year to promote ethical AI practices and research across the Middle East and Global South.

The initiative is supported by an Intergovernmental Assurance Agreement between the UAE and the United States, ensuring compliance with cybersecurity, data protection and export controls.

Microsoft said its UAE expansion is built on a principle of trust - between nations, institutions and the people they serve - aiming to make AI progress both responsible and inclusive.