Microsoft and Abu Dhabi technology group G42 are joining forces to deliver a 200-megawatt increase in datacentre capacity in the UAE through Khazna Data Centres. This expansion is part of Microsoft’s wider $15.2 billion commitment to the country and is slated to be operational before the close of 2026.

The additional facilities will extend Microsoft Azure’s secure, sovereign cloud footprint in the UAE, fitted with modern GPUs and AI-grade infrastructure. These resources are aimed at helping government bodies, regulated sectors and private firms develop, test and scale AI and cloud solutions with greater speed and resilience.

Responsible innovation sits at the heart of the collaboration. The partners — together with the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) — launched the Responsible AI Future Foundation to promote ethical practices and governance that could become global reference points for AI development.

Beyond machines and megawatts, the project promises to nurture people. Aligned with Microsoft’s pledge to skill one million individuals in digital and AI competencies by 2027, the rollout is expected to create pathways for Emirati and regional talent. Microsoft and G42 have already invested in local capacity through the Global Engineering Development Centre and the AI for Good Lab in Abu Dhabi, while deepening ties with universities and public institutions.

The move also supports the UAE’s ambition to double the digital economy’s share of GDP over the coming decade. By enlarging its cloud and AI infrastructure, the nation hopes to attract fresh investment and spark innovation across multiple sectors.

More than simply adding computing power, the 200MW expansion signals a long-term commitment to building a secure, sovereign and innovation-led digital ecosystem designed to benefit businesses, citizens and the wider economy.