Microsoft to invest $15b in UAE AI data centres by end of 2029

• Company has already accumulated the equivalent of 21,500 Nvidia A100 GPUs in the UAE, using a mix of A100, H100, and H200 chips.

Microsoft announced plans to ramp up its total investment in the United Arab Emirates (UAE) to a remarkable $15 billion by the end of 2029, with a significant portion dedicated to the expansion of AI data centres across the country.

The tech giant has also secured approval from the US Trump administration to export Nvidia’s advanced chips for use in its UAE-based facilities, a senior Microsoft executive told Reuters.

“The biggest share of [the investment], by far, both looking back and looking forward, is the expansion of AI data centres across the UAE,” Microsoft Vice Chair and President Brad Smith stated at the ADIPEC energy conference in Abu Dhabi.

“From our perspective, it’s an investment that is critical to meet the demand here for the use of AI.”

The UAE has been aggressively investing to position itself as a global artificial intelligence powerhouse, leveraging strong diplomatic relations with Washington to secure access to US technology, including state-of-the-art AI processors. Microsoft’s latest initiative underscores the country’s ambition and the global competition to supply cloud and AI infrastructure.

Stargate UAE

Last year, Microsoft invested $1.5 billion to acquire a minority stake in Abu Dhabi’s leading AI company G42, securing a seat on the board now held by Smith.

However, G42’s historical ties to China prompted concern in US political circles, with lawmakers scrutinising potential risks of advanced US semiconductors reaching Beijing via the UAE.

G42 has since pledged to work closely with American partners and authorities to ensure AI development complies with US regulatory standards, and Smith noted “enormous progress” in meeting these requirements.

Microsoft, under US government licenses approved last year, has already accumulated the equivalent of 21,500 Nvidia A100 GPUs in the UAE, using a mix of A100, H100, and H200 chips. The White House approved additional exports in September, covering chips equivalent to 60,400 Nvidia A100 GPUs, including next-generation GB300 processors.

These chips are expected to ship “in a matter of months,” Smith confirmed, and will be deployed in Microsoft’s own UAE data centres.

To date, Microsoft will have invested $7.3 billion in the UAE from 2023 through 2025, with a further $7.9 billion allocated through 2029 for ongoing AI and cloud infrastructure expansion, according to Smith’s blog post.

Notably, none of the $15.2 billion investment covers “Stargate UAE”— the $10 billion first phase of what will become one of the world’s largest data centre hubs, recently announced during US President Donald Trump’s Gulf visit in May.

Political reaction in Washington remains mixed. US House Select Committee on China Chairman Rep. John Moolenaar welcomed closer UAE-US technology ties, while cautioning that the transfer of advanced technology should be contingent on the UAE “verifiably and irreversibly choosing America” amidst its ongoing relations with China.

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