UAE to host Microsoft’s largest AI investment outside the US

Tech giant Microsoft announced on Monday a massive $15.2 billion investment plan in the United Arab Emirates (UAE), primarily focused on artificial intelligence (AI) and cloud infrastructure, reinforcing the Gulf nation's ambitions to become a regional AI hub.

The investment, to be spread out through 2029, builds on the $7.3 billion the company has already poured into the country since 2023. Microsoft will allocate an additional $7.9 billion over the next four years to expand its digital capabilities in the UAE, according to a letter published by Brad Smith, President of Microsoft, during his visit to Abu Dhabi.

A key development enabling this expansion is Microsoft's newly secured license to import advanced AI chips into the UAE—hardware that is critical to powering next-generation AI models and high-performance computing. 

The license represents a strategic regulatory breakthrough, as access to such technology has been subject to increased scrutiny due to global export controls.

Smith emphasized that this approval will allow Microsoft to build state-of-the-art AI data centers and expand access to cloud services and AI infrastructure, both for government entities and private enterprises across the Emirates.

“This investment reflects our deep commitment to the UAE’s vision for digital innovation and economic diversification,” Smith wrote. “AI represents a transformational opportunity, and we are proud to help the country harness its full potential.”

A Growing AI Partnership

The announcement comes as part of a broader collaboration between Microsoft and UAE-based organizations, including G42, the Abu Dhabi-headquartered AI and cloud computing company. Microsoft and G42 recently deepened their strategic partnership to jointly advance AI development, ethics, and talent building in the region.

This investment also aligns with the UAE’s national AI strategy, which aims to position the country as a global leader in responsible AI by fostering innovation, infrastructure, regulation, and workforce development.

Microsoft’s funding will support the development of AI training programs, the launch of new data centers, and the deployment of cutting-edge AI tools across sectors including health, education, energy, and finance.

The company is also expected to collaborate with local universities and institutions to help train a new generation of AI professionals in the Gulf region.

With growing global demand for secure, high-performance cloud infrastructure, Microsoft's expanded footprint in the UAE is expected to serve not only local needs but also act as a regional hub for the wider Middle East and North Africa (MENA) region.