Microsoft Plans $15 B AI & Cloud Push in UAE by 2029

Microsoft has announced a landmark commitment to invest $15.2 billion in the United Arab Emirates by the end of 2029, aimed at expanding artificial-intelligence infrastructure, building talent and reinforcing trust across the region. The tech giant has already spent around $7.3 billion through 2025, with another ~$7.9 billion planned for 2026-29.

At the heart of the investment is a push to build and expand data centres and cloud infrastructure in partnership with UAE-based AI firm G42 and its subsidiary Khazna Data Centers. The firms announced a 200-megawatt expansion in Abu Dhabi, expected to be operational by the end of 2026. Microsoft also secured US government approval to export tens of thousands of advanced AI chips from NVIDIA, including the GB300 models, to support the UAE build-out.

The UAE leads in generative-AI adoption, with reported usage by 59.4% of its population—making it the global leader in per-capita AI use. Microsoft’s investment supports that trend by funding cloud capacity, local operations and infrastructure built to national-sovereignty standards.

Beyond hardware, Microsoft is focusing on talent and trust. The company’s plan includes training one million UAE residents in AI skills, partnering with local universities and government to develop workforce capabilities. On the trust front, the partnership features compliance agreements with US and UAE governments covering cybersecurity, export controls, data protection and responsible-AI design.

For the UAE, the deal accelerates its ambition, outlined in its national AI strategy, to transform into a global technology hub rather than relying solely on oil revenue. For Microsoft and its partners, this becomes not only a business expansion, but a strategic bridge between U.S. tech diplomacy and Middle-East innovation. Analysts note that export licensing and talent retention remain potential challenges.

In summary, Microsoft’s multi-billion dollar investment signals a deepening of the UAE’s AI ecosystem through infrastructure, education and international cooperation, while positioning the country as a major player in the global AI race.