Microsoft and G42 have announced a 200 MW expansion of datacenter capacity, delivered through Khazna Data Centers, a subsidiary of G42. This is part of Microsoft’s US$ 15.2 billion investment announcement in the UAE, and the expansion is expected to start coming online before the end of 2026.
In a press release, Microsoft and G42 revealed that the datacenter expansion will provide additional AI and cloud infrastructure to the UAE, strengthening Microsoft Azure’s sovereign cloud services. This partnership supports the UAE’s national digital economy strategy, which aims to double the digital economy’s contribution to GDP over the next decade.
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.”
Additionally, advanced GPUs and AI capabilities will empower public sector organizations, regulated industries, and enterprises to innovate, scale, and operate with agility and resilience. Moreover, the partnership will emphasize cybersecurity, data protection, and ethical AI. The Responsible AI Future Foundation, established through a partnership between Microsoft, G42, and MBZUAI, will serve as a global model for responsible AI development and governance.
