Microsoft (MSFT) and Abu Dhabi-based artificial intelligence company G42 announced on Wednesday a 200-megawatt expansion of their existing data center in the United Arab Emirates.
The expansion is part of Microsoft’s announcement earlier this week to spend more than $15B in the UAE by 2029, including $7.9B from 2026 to 2029. It will be delivered through G42 subsidiary Khazna Data Centers and is expected to start coming online before the end of 2026.
“This expansion is more than datacenters. It’s about powering the UAE’s future,” Microsoft Vice Chair and President Brad Smith said in a statement. “By combining Microsoft global expertise with G42’s local leadership and broadening role as an international neocloud enterprise, we’re building the foundation for innovation that will bring new opportunities to people across the country.”
“Our partnership with Microsoft advances our mission to build the Intelligence Grid, the interconnected infrastructure for intelligence designed to empower people, industries, and nations in the AI era,” Peng Xiao, Group CEO of G42, added. “As a neocloud enterprise born in Abu Dhabi, G42 is advancing systems that are sovereign, secure, and open to global collaboration, keeping technology human by design.”
Microsoft shares were little changed in premarket trading on Wednesday.