G42 and Microsoft Announce 200MW UAE Data Centre After $15.2B AI Deal

In the UAE’s drive for digital transformation, G42 - the parent of Khazna Data Centres - and Microsoft have announced a 200MW expansion of data centre capacity. Coming as part of Microsoft’s $15.2 billion investment in the UAE, the first capacity is expected to start coming online before the end of 2026, and is set to strengthen Microsoft Azure’s secure, scalable and sovereign cloud services.

“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," said Peng Xiao, group CEO of G42. "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.”

The companies said the expansion is grounded in cybersecurity, data protection and ethical AI, with the Responsible AI Future Foundation - established through a partnership between Microsoft, G42 and MBZUAI - positioned as a model for responsible AI development and governance. The additional capacity will provide AI and cloud infrastructure in support of the UAE’s national digital economy strategy, with advanced GPUs and AI capabilities set to serve public sector organisations, regulated industries and enterprises.

Aligned with Microsoft’s commitment to skill one million people in the UAE by 2027, the partnership has established the Global Engineering Development Centre and the AI for Good Lab in Abu Dhabi, and continues to work with government and educational institutions. The expansion, they said, builds on joint efforts including the Responsible AI Foundation and the establishment of AI research centres in Abu Dhabi.