Microsoft Commits $15.2bn to UAE’s AI and Cloud Infrastructure by 2029

Microsoft has announced a landmark $15.2bn investment in the United Arab Emirates between 2023 and 2029, aimed at expanding artificial intelligence and cloud infrastructure while developing critical digital skills.
Microsoft's $15.2bn UAE Investment: Powering AI and Cloud Infrastructure by 2029 Microsoft's $15.2bn UAE Investment: Powering AI and Cloud Infrastructure by 2029

Microsoft will invest substantially in the UAE’s technological ecosystem, with plans to transform the nation’s digital landscape through strategic infrastructure development and talent training. The investment encompasses multiple key areas:

Investment Breakdown:

  • $7.3bn invested by end of 2025, including:
    • $1.5bn equity investment in G42
    • $4.6bn in AI and cloud data centres
    • $1.2bn in local operating costs
  • $7.9bn planned between 2026-2029 for continued expansion

A critical component of this initiative is Microsoft’s commitment to train one million people by 2027, including 120,000 government employees, 175,000 students, and 39,000 teachers. This extensive skilling program aims to ensure AI innovation is inclusive and accessible across various sectors.

“This is not money raised in the UAE. It’s money we’re spending in the UAE,” said Brad Smith, Vice Chair and President of Microsoft. “We’re focused not just on growing our business but also on contributing to the local economy.”

The investment is supported by an Intergovernmental Assurance Agreement (IGAA) that establishes frameworks for cybersecurity, data protection, export control, and responsible AI governance. Microsoft has secured export licenses to import advanced NVIDIA GPUs, equivalent to more than 80,000 A100-class chips, to power Azure AI services.

Strategic partnerships with local entities like G42 and the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) will further drive innovation. The companies have co-founded the Responsible AI Future Foundation (RAIFF) to promote ethical AI practices and strengthen international technology cooperation.

Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, noted that this investment reflects global confidence in the UAE’s economic vision to build a diversified, knowledge-based, and technology-driven economy.