Microsoft (MSFT) Stock: $15 Billion UAE Investment Expands with 200 MW Data Center Addition

TLDR

• Microsoft and G42 announced a 200-megawatt data center capacity expansion in the United Arab Emirates
• The new capacity will be delivered through Khazna Data Centers and is expected to start coming online before the end of 2026
• Microsoft’s total UAE investment will reach $7.3 billion by end of 2025, with another $7.9 billion planned for 2026-2029
• The Trump administration approved exports of advanced Nvidia chips for Microsoft’s UAE data centers
• Microsoft holds a $1.5 billion minority stake in G42, which is backed by Silver Lake, Mubadala, and Ray Dalio’s family office

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Microsoft and Abu Dhabi’s artificial intelligence group G42 made a joint announcement on Wednesday. The two companies are expanding data center capacity in the United Arab Emirates by 200 megawatts.

The expansion is part of Microsoft’s larger commitment to the Gulf country. The tech giant plans to invest over $15 billion in the UAE.

The new facilities will be built through Khazna Data Centers. Khazna is a unit of G42.

Microsoft Corporation (MSFT)

The companies expect the new capacity to start coming online before the end of next year. They didn’t provide additional details about the project in their joint statement.

Microsoft broke down its investment timeline earlier this week. The company said it will spend $7.3 billion in the UAE between 2023 and the end of 2025.

An additional $7.9 billion is earmarked for the period from 2026 through 2029. That brings the total commitment to over $15 billion.

Nvidia Chip Approval Opens New Doors

The Trump administration made a key decision that will help Microsoft’s UAE operations. The government approved the export of advanced Nvidia chips for the company’s data centers in the region.

This approval is a big deal for the project. The UAE has been spending billions to position itself as a global AI hub.

The Nvidia chips will power the expanded infrastructure. They’re essential for running advanced AI workloads in the data centers.

Microsoft invested $1.5 billion in G42 last year. The investment gave Microsoft a minority stake in the Abu Dhabi firm.

G42 has some heavy hitters backing it. The investor list includes private equity firm Silver Lake and Abu Dhabi sovereign wealth fund Mubadala.

Ray Dalio’s family office is also an investor. Dalio is a billionaire investor and founder of Bridgewater Associates.

Building Out Azure Infrastructure

The expansion will strengthen Microsoft Azure’s presence in the Middle East. The two firms said the project will provide more AI and cloud infrastructure to the UAE.

They described the enhanced services as “secure, scalable, and sovereign.” That language suggests Microsoft is addressing concerns about data sovereignty and security.

Cloud providers often face questions about where customer data is stored. Local data centers can help address regulatory requirements.

The 200-megawatt capacity addition is substantial. For context, a typical hyperscale data center might use 30 to 50 megawatts.

Microsoft’s UAE expansion reflects the region’s growing importance in tech. The Gulf states have been investing heavily in digital infrastructure.

The partnership with G42 gives Microsoft a local foothold. G42 has deep ties to Abu Dhabi’s government and business community.

The new facilities are expected to start coming online before the end of 2026. Microsoft’s total UAE investment will reach $7.3 billion by the end of this year, with an additional $7.9 billion planned through 2029.

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