Microsoft to Invest $15.2 Billion in UAE to Boost AI and Cloud Infrastructure by 2029

Microsoft has announced a landmark $15.2 billion investment in the United Arab Emirates (UAE) by 2029, aimed at expanding artificial intelligence (AI) and cloud infrastructure, training local digital talent, and strengthening technology cooperation between the UAE and the United States.

According to the Abu Dhabi Media Office, Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, was briefed on the plans by Microsoft Vice Chair and President Brad Smith during a meeting on November 3.

“This is not money raised in the UAE. It’s money we’re spending in the UAE,” Smith said, emphasizing that the investment is focused on combining “technology, talent, and trust.” He added that Microsoft aims to empower local talent to design and deploy AI solutions that address the region’s specific needs.

The multibillion-dollar initiative builds on Microsoft’s existing partnership with Abu Dhabi-based AI firm G42 and reflects deepening US-UAE cooperation in advanced technology. G42 CEO Peng Xiao said the partnership would “advance the frontiers of AI across industries” and “set a new benchmark for cross-border collaboration based on trust.”

Under the plan, Microsoft will spend more than $7.3 billion between 2023 and 2025, including a $1.5 billion equity investment in G42, over $4.6 billion in capital expenditure on AI and cloud data centres, and $1.2 billion in local operating costs. Between 2026 and 2029, the company will allocate a further $7.9 billion, with $5.5 billion dedicated to expanding data centre capacity across the country.

Microsoft has also obtained export licences to import advanced NVIDIA GPUs into the UAE, enabling the deployment of more than 80,000 A100-class chips to support large-scale AI workloads.

Alongside infrastructure investment, Microsoft plans to train one million people in the UAE by 2027. This includes 120,000 government employees and 175,000 students, as part of efforts to close the digital skills gap. The company has already established a Global Engineering Development Centre and an AI for Good Lab in Abu Dhabi.

To promote ethical and responsible AI development, Microsoft and G42 co-founded the Responsible AI Future Foundation earlier this year in partnership with the Mohamed bin Zayed University of Artificial Intelligence. Both governments have also signed an Intergovernmental Assurance Agreement to ensure compliance with cybersecurity, data protection, and export controls.

Khaldoon Khalifa Al Mubarak, Secretary General of the Artificial Intelligence and Advanced Technology Council, said the initiative “reflects our shared commitment to harness AI for sustainable growth, economic diversification, and opportunity for future generations.”

The investment marks one of Microsoft’s largest commitments in the Middle East, reinforcing the UAE’s position as a regional hub for AI innovation and digital transformation.