Microsoft announced a US$15.2 billion investment in the UAE to expand AI and cloud infrastructure, including new data centers and Nvidia chips. The deal strengthens U.S.-UAE tech ties and positions the Gulf nation as a key AI innovation hub.
Microsoft unveiled a daring strategic move totaling US$15.2 billion to the United Arab Emirates over seven years ending in 2029, with the majority of the money directed toward improving artificial intelligence infrastructure and cloud.
According to Brad Smith, Microsoft’s Vice Chair & President newer models GB300
This export permission emphasizes the geo-political aspects of the deal and is part of a bigger change in U.S. policy. Earlier stages of investment show momentum; Microsoft spent around US$7.3 billion in the UAE from 2023 to 2025. From 2026 through the end of 2029, the remaining US$7.9 billion is intended for distribution to cover capital expenses on infrastructure and local operating costs. Beyond just data centres and hardware, the pact includes talent development and governance mechanisms.
Microsoft has local collaborations and training programmes meant to create an AI-literate labour in the UAE and confirm the area as an innovation hub. The UAE views the investment in question as part of its long-term strategy to reduce dependency on oil and gas and to shape its economy around knowledge and technology.
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The partnership is a golden opportunity for Microsoft to overall develop its AI products in a country where the demand is surging and the regulations are friendly and supportive. Analysts argue that the UAE is being portrayed as a ‘test case’ for the US-led and globally-disseminated approach to managing the most advanced AI technologies and infrastructures development.
