Microsoft and United Arab Emirates-based G42 revealed a 200-megawatt expansion of data centre capacity as part of their strategic partnership to accelerate the nation’s digital transformation.

The additional capacity will be delivered through G42 subsidiary Khazna Data Centers with operations slated to begin by the end of 2026.

The expansion will provide further AI and cloud infrastructure across the country, “strengthening Microsoft Azure’s secure, scalable, and sovereign cloud services” while supporting the UAE’s national digital economy strategy.

The move comes on the heels of the tech giant announcing an investment in the UAE earlier this month, pledging a sum of $15.2 billion by 2029.

Microsoft also revealed it is first company under the administration of US President Donald Trump to secure export licenses from the US Commerce Department to ship Nvidia GPUs to the UAE.

In 2024 Microsoft invested $1.5 billion in a minority stake in G42, a deal which gave the tech giant a seat on the company’s board of directors.