The tech giant expands AI and cloud infrastructure in Abu Dhabi and Dubai through 2029, deepening U.S.-UAE tech cooperation.
Microsoft said on Nov. 3 it will invest $7.9 billion in the United Arab Emirates (UAE) between 2026 and 2029, after securing approval from the United States to export advanced Nvidia chips for its data centers in the Gulf state.
It brings the U.S. software giant’s total investment in the UAE to $15.2 billion, building on a 2023 initiative with G42, the UAE’s state-backed artificial intelligence firm. Under the plan, Microsoft aims to expand cloud computing capacity, train local talent, and strengthen AI governance.
“This is not money raised in the UAE. It’s money we’re spending in the UAE,” Microsoft President Brad Smith said in a blog post. “Our investments benefit the shareholders of our company, the people of the UAE, and the relationship between our two nations.”
Microsoft said it has already spent about $7.3 billion in the UAE since 2023, including a $1.5 billion equity stake in G42, $4.6 billion in building AI and cloud infrastructure, and $1.2 billion in operating costs.
The further investment of $7.9 billion includes about $5.5 billion in capital expenses for new and expanded data centers.
The news coincides with the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) this week, bringing together global energy leaders, innovators, and policymakers.
Microsoft said it received licenses from the U.S. Commerce Department to ship Nvidia’s powerful graphics processing units (GPUs) to the UAE. Those licenses allowed it to accumulate the equivalent of 21,500 Nvidia A100 chips based on a mix of A100, H100, and H200 processors.
In September, the company obtained additional licenses under the Trump administration to export Nvidia’s new GB300 GPUs, equivalent to about 60,400 A100 chips, after agreeing to what Microsoft described as “updated and stringent technology safeguards.”
The GPUs will support AI models from OpenAI, Anthropic, open-source developers, and Microsoft itself, the company said. It added that the UAE leads the world in per capita generative AI usage, with nearly 60 percent of its population using such tools, according to Microsoft’s AI Diffusion Report.
