Microsoft has announced plans to invest $15.2 billion in the United Arab Emirates by the end of 2029, in one of its largest commitments in the Middle East to date. The investment will drive the expansion of AI and cloud data centre infrastructure, accelerate digital talent development, and reinforce technology collaboration between the UAE and the United States, according to a joint announcement shared by Microsoft and reported by Reuters.
The announcement follows US government approval for Microsoft to export Nvidia’s advanced GPUs to power next-generation AI capabilities in the UAE. Microsoft Vice Chair and President Brad Smith told Reuters that the Trump administration recently cleared for export an amount equivalent to 60,400 Nvidia A100-class GPUs, including the more advanced GB300 models, after revising technology safeguards. Combined with approvals granted last year under the Biden administration, Microsoft now holds licenses for the equivalent of more than 80,000 A100-class chips for deployment in its UAE data centres.
“The biggest share of [the investment], by far, both looking back and looking forward, is the expansion of AI data centres across the UAE,” Smith said during an interview at the ADIPEC energy conference in Abu Dhabi. “From our perspective, it’s an investment that is critical to meet the demand here for the use of AI.”
Strengthening UAE–US technology partnership
His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, was briefed by Smith on Microsoft’s long-term plans, including expanding AI infrastructure and investing in local talent. Sheikh Khaled described the investment as a “powerful testament to global confidence in the UAE’s vision to build a diversified, knowledge-based, and technology-driven economy.”
Smith emphasised that the funds are being directly deployed in the UAE, not raised locally: “This is not money raised in the UAE. It’s money we’re spending in the UAE. And as we do everywhere in the world, we’re focused not just on growing our business but also on contributing to the local economy.”
Microsoft’s investment builds on its $1.5 billion minority stake in Abu Dhabi-based G42, an AI technology holding company. Smith said G42 had made “enormous progress” in aligning with US compliance standards following past concerns in Washington over its ties to China. G42’s Group CEO Peng Xiao said the partnership with Microsoft “is not only about aspiration—it’s about execution and impact,” adding that the two companies are “advancing the frontiers of AI across industries and setting a new standard for cross-border collaboration rooted in trust.”
Investing in AI infrastructure and talent
Between 2023 and the end of this year, Microsoft will have invested $7.3 billion in the UAE—comprising $1.5 billion in G42, $4.6 billion in capital expenses for AI and cloud data centres, and $1.2 billion in operating costs. From 2026 through 2029, a further $7.9 billion will be spent to expand AI infrastructure and operations, including projects to be unveiled in Abu Dhabi later this week.
Microsoft has also committed to skilling one million people in the UAE by 2027, including 120,000 government employees, 175,000 students, and 39,000 teachers, through partnerships with local institutions and initiatives such as the Microsoft AI for Good Lab and the Global Engineering Development Centre in Abu Dhabi.
In collaboration with G42 and the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), Microsoft also co-founded the Responsible AI Future Foundation (RAIFF) to promote ethical AI development and governance across the Middle East and the Global South.
His Excellency Khaldoon Khalifa Al Mubarak, Secretary General of the Artificial Intelligence and Advanced Technology Council, said the investment strengthens “the deep and enduring technology partnership between the UAE and the United States,” reflecting a shared commitment to “harness AI for sustainable growth, economic diversification, and opportunity for future generations.”
As the UAE continues to position itself as a global AI hub, Microsoft’s expanded investment—coupled with US-approved Nvidia chip exports—marks a new phase in the country’s technological transformation and deepens the strategic digital ties between Abu Dhabi and Washington.
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