Tech giant Microsoft is taking a major leap in the Middle East by committing $15.2 billion to develop artificial intelligence and cloud infrastructure in the United Arab Emirates (UAE) over the period 2023 to 2029. According to the company’s announcement, this investment is not about raising funds locally but about deploying capital within the UAE, reinforcing the nation’s ambition to become a global tech and AI hub. 

A large share of the investment has already been spent: by end-2025 Microsoft expects to have invested more than $7.3 billion, including a $1.5 billion equity stake in the UAE-based AI leader G42, over $4.6 billion in capital expenditure on AI and cloud datacentres, and more than $1.2 billion in local operating costs. 

Looking ahead, from 2026 to 2029 Microsoft plans to invest an additional $7.9 billion, of which $5.5 billion will go into infrastructure expansion and $2.4 billion into operating expenses and cost of goods. 

The scale of the investment underscores a strategic partnership between the UAE, the United States and Microsoft that spans talent, technology and trust. It goes beyond bricks-and-mortar datacentres. Microsoft has committed to training and upskilling one million people in the UAE by 2027, including government employees, students and teachers — ensuring that the human capital matches the infrastructure. 

Advanced hardware is at the heart of the programme. Microsoft has secured U.S. licences to export high-end Nvidia GPUs (A100, H100, H200 and GB300 series) to power its UAE datacentres, reflecting not only tech investment but also geopolitics of semiconductor supply. 

Ultimately, Microsoft’s investment will accelerate the UAE’s transformation from a regional player into a global technology platform — combining sustainable energy, AI-powered services, cloud computing and a digital-first economy. With this move, the UAE positions itself at the frontier of generative AI adoption, while Microsoft secures a strategic base in a fast-growing market.