du, a UAE-based telecom and digital services provider, has announced a collaboration with global technology giant Microsoft, to build a new hyperscale data center at an investment of AED 2 billion (~US$ 544 million). The announcement was made on the sidelines of Dubai AI Week.
Media reports quoted Fahad Al Hassawi, CEO, du as saying that the deal “represents a pivotal leap in our strategic goal to revolutionise the digital ecosystem of the UAE.”
The deal also drew the attention of HH Sheikh Hamdan bin Mohammed bin Rashid al Maktoum, Crown Prince of Dubai and Deputy Prime Minister of the United Arab Emirates (UAE), who took to LinkedIn and posted, “At Dubai AI Week, I witnessed an announcement from du to launch a groundbreaking AED 2 billion hyperscale data center, in collaboration with Microsoft. This marks a significant investment in digital infrastructure, reinforcing Dubai’s leadership in adopting the latest technologies, innovations, and digital services.”
At present du has five data center facilities; one each in Kizad and Masdar City located in Abu Dhabi, and three – Dubai Silicon Oasis, Meydan, and IMPZ Equinix (in partnership with Equinix)– located in Dubai.
But this isn’t du’s first partnership with Microsoft. Readers would recall that in March 2024, du announced a collaboration with Microsoft to adopt Generative AI technology across its operations to enhance employee productivity and transform the customer experience.
This isn’t Microsoft’s first foray into UAE either. In April 2024, announced an investment of a whopping US$ 1.5 Billion into G42, an AI technology holding company from Abu Dhabi.