Post by : Bianca
Haleem
Microsoft and Abu Dhabi’s G42 have announced plans to increase datacentre capacity in the UAE by 200 megawatts through Khazna Data Centres. The expansion is part of Microsoft’s $15.2 billion pledge to the country and is scheduled to be operational by the end of 2026.
The project will broaden onshore AI and cloud capabilities, enhancing Microsoft Azure’s secure, scalable and sovereign cloud services in the UAE. Outfitted with advanced GPUs and AI infrastructure, the new facilities are intended to support public-sector bodies, regulated industries and private enterprises in their digital transformation efforts.
Trust, cybersecurity and responsible use of AI are central to the collaboration. A key initiative is the Responsible AI Future Foundation, created by Microsoft, G42 and the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) to help define global standards for ethical AI development and governance.
Beyond infrastructure, the expansion aims to grow local skills. Aligned with Microsoft’s target to train one million people in digital and AI disciplines by 2027, the effort is expected to generate new opportunities for UAE talent. Microsoft and G42 have already invested in capabilities such as the Global Engineering Development Centre and the AI for Good Lab in Abu Dhabi while working with academic and government partners.
The move also supports the UAE’s goal to raise the digital economy’s share of GDP over the coming decade. By strengthening cloud and AI capacity at home, the country is positioning itself to attract further investment and spur innovation across sectors.
The 200MW increase goes beyond additional computing power — it signals the UAE’s commitment to a secure, sovereign and innovation-led digital ecosystem intended to benefit businesses, citizens and the wider economy.
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