Microsoft and Abu Dhabi’s G42 announced a 200-megawatt data center capacity expansion in the United Arab Emirates, to be delivered by Khazna Data Centers, a G42 subsidiary, the companies said in a joint announcement.
G42 is an Abu Dhabi–based AI and cloud technology group. The partners said initial capacity is expected to start coming online before the end of 2026, positioning the build to support AI and sovereign cloud workloads on Microsoft Azure.
Microsoft detailed a $15.2 billion UAE commitment through 2029, $7.3 billion invested by end-2025 and $7.9 billion planned for 2026–2029, in a company post.
The same post notes U.S. Commerce export licenses that have enabled Microsoft to stage the equivalent of 21,500 Nvidia A100-class GPUs in the UAE to date.
G42 published a matching news page confirming Khazna’s role and the 2026 timeline for initial capacity.
Microsoft said the expansion strengthens Azure’s secure, scalable and sovereign services in the UAE; the companies did not disclose site locations or capex for the 200-MW build.
