Microsoft to Invest $15 Billion in UAE, Expands AI Data Centres
The UAE’s AI ambitions have raised scrutiny in Washington due to G42’s past ties with China.
ABU DHABI: Microsoft has announced plans to increase its total investment in the United Arab Emirates to $15 billion by 2029, with the majority aimed at expanding AI data centres across the country. The tech giant has received approval from the Trump administration to export advanced Nvidia chips for its UAE operations, a senior Microsoft executive confirmed to Reuters on Monday.
Brad Smith, Microsoft Vice Chair and President, said the investment is “critical to meet the demand for AI” in the UAE, which has been actively positioning itself as a global artificial intelligence hub. Last year, Microsoft invested $1.5 billion to acquire a minority stake in Abu Dhabi AI company G42, gaining a board seat in the process.
The UAE’s AI ambitions have raised scrutiny in Washington due to G42’s past ties with China. However, Smith said the company has made significant progress in complying with U.S. technology and export regulations.
Under licences approved by the Biden administration, Microsoft has accumulated the equivalent of 21,500 Nvidia GPUs, including A100, H100, and H200 chips, in the UAE. Additional White House approvals in September allow the export of a further 60,400 advanced A100 chips, including Nvidia GB300 GPUs, for Microsoft’s AI data centres.
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U.S. lawmakers, including House Select Committee on China Chairman John Moolenaar, have expressed caution about technology transfers to the UAE, citing its close ties with China.
Between 2023 and the end of this year, Microsoft will have invested $7.3 billion in the UAE, with an additional $7.9 billion planned through 2029 for AI and cloud infrastructure expansion. Smith confirmed that none of this investment involves Stargate UAE, the first phase of one of the world’s largest planned data centre hubs, which was announced during former President Donald Trump’s Gulf visit in May.
This major investment underlines Microsoft’s commitment to AI development in the region while strengthening U.S.-UAE technology collaboration.
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