Microsoft Secures $15.2B UAE Investment Deal with Unprecedented AI Chip Export License

Microsoft's $15.2B UAE investment turns Gulf State into test case for US AI diplomacy | TechCrunch

Microsoft will invest $15.2 billion in the United Arab Emirates over the next four years, the company announced Monday at the first annual Abu Dhabi Global AI Summit. The investment will include the first-ever shipments of the most advanced Nvidia GPUs to the UAE. As part of the deal, the U.S. has granted Microsoft a license to export Nvidia chips to the UAE, a move that positions the country as both a proving ground for U.S. export-control diplomacy and a regional anchor of American AI influence. The deal allows Microsoft to expand its foothold into the Middle East, a key region in the global fight for AI dominance. In May, President Donald Trump struck a deal with UAE President Sheikh Mohamed bin Zayed al-Nahyan to build an AI data center campus in Abu Dhabi. The project was delayed due to U.S. export controls, which restricted the sale of powerful Nvidia chips needed to run advanced AI systems. Microsoft became the first company to receive a license from the U.S. Commerce Department to ship the chips to the UAE in September. The move comes as critics say the deal undermines the logic of the U.S.'s export restrictions to China by introducing possible back-channels through a Chinese ally. In a statement, Microsoft said it performed substantial work to meet the strong cybersecurity and national security conditions required by the licenses, which has enabled the firm to accumulate the equivalent of 21,500 Nvidia A100 GPUs in the UAE, based on a combination of A100, H100, and H200 chips. Microsoft said it is using the chips to provide access to AI models from OpenAI, Anthropic, open-source providers, and itself. The $15.2 billion figure includes money Microsoft began spending in the UAE starting in 2023 as part of a new AI initiative in the country. Between 2023 and the end of 2025, Microsoft will have spent just over $7.3 billion in the UAE, including a $1.5 billion equity investment in G42, the UAE's sovereign AI company, and more than $4.6 billion in capital towards data centers. As part of the new deal, Microsoft pledges to spend $7.9 billion more in the UAE from the start of 2026 to the end of 2029, including $5.5 billion in capital expenses for ongoing and planned expansion of AI and cloud infrastructure. Microsoft hinted at new steps it will share publicly in Abu Dhabi this week. Microsoft's work in the UAE goes beyond building data centers. The company says it is pairing massive AI infrastructure with deep investment in local talent, training, and governance. The firm is pledging to train a million residents by 2027 and use Abu Dhabi as a regional hub for AI research and model development. The investment comes the same day that Microsoft signed a $9.7 billion deal with Australia's IREN for AI cloud capacity.

Microsoft is investing $15.2 billion in the UAE to expand AI and cloud operations

The country's citizens are among the top generative AI users worldwide Microsoft has pledged to invest $15.2 billion in the UAE between 2023 and 2029 to expand its AI infrastructure and build talent in the region. The company's investment goes one step further in helping building trust in US-UAE tech cooperation and partnerships, with Microsoft having already spent $7.3 billion across equity investments, capital expenditure and other ongoing expenses between 2023 and 2025. Microsoft now plans to match that with a further $7.9 billion invested between now and 2029, a period which will see $5.5 billion dedicated to the expansion of AI and cloud infrastructure, as well as $2.4 billion devoted to operating costs. As part of its ongoing investments into the UAE, Microsoft has secured US export licenses for Nvidia GPUs while meeting strict security and compliance conditions. Around 81,900 GPUs are now set to be deployed, the company noted, to be used for models across OpenAI, Anthropic and Microsoft's own services. Microsoft's investment in the UAE doesn't come out of nowhere - the country ranked highest globally for AI usage per capita, according to Microsoft's recent AI Diffusion Report. 59.4% of the UAE population use GenAI, ahead of Singapore (58.6%), the report found, with no other countries passing the 50% mark. Speaking about its upskilling efforts, Microsoft President Brad Smith said the company is well on its way to meet and exceed its goal to train one million people in the UAE by the end of 2027. The final pillar of the investment is about strengthening trust. "Given the role of export controls and other trade issues, the flow of advanced GPUs and AI models also requires trust between nations," Smith noted. To tackle this, Microsoft is leading the development of the Intergovernmental Assurance Agreement (IGAA) together with the UAE and US governments to ensure that security, export control and technology transfer requirements are met.

Microsoft to quadruple its UAE AI data center capacity as part of $7.9B investment - SiliconANGLE

Microsoft to quadruple its UAE AI data center capacity as part of $7.9B investment Microsoft Corp. plans to significantly grow its data center footprint in the United Arab Emirates through a partnership with a local company. The tech giant announced the initiative today alongside a second major infrastructure investment. Microsoft disclosed that it has commissioned billions of dollars worth of data center capacity from Lambda Labs Inc., a venture-backed cloud startup. Both projects will use Nvidia Corp.'s cutting-edge GB300 artificial intelligence chip. In 2023, Microsoft partnered with an Abu Dhabi-based company called Group42 to grow its UAE data center presence. The tech giant disclosed today that it will have invested more than $7.3 billion in the partnership by the end of the year. Over half the sum was allocated to capital expenditures, a line item that includes data center infrastructure. The project saw Microsoft deploy Nvidia Corp. chips with computing capacity equivalent to 21,500 H100 graphics cards. The H100 was Nvidia's flagship AI accelerator until 2023. The chipmaker's newer Blackwell chip, which debuted last March, provides about 30 times more performance for large language model inference. The investment announced today will see Microsoft spend another $7.9 billion in the UAE. As part of the investment, the company will nearly quadruple its local data center infrastructure's computing capacity to the equivalent of 81,900 H100 chips. Microsoft president Brad Smith wrote in a blog post that the tech giant has secured the U.S. Commerce Department approvals necessary to ship the new GPUs to the UAE. Some of the processors will be GB300 superchips, the most advanced AI accelerators currently sold by Nvidia. Each GB300 includes one central processing unit and two Blackwell Ultra graphics cards, each of which provide 50% more performance than a standard Blackwell B200. Microsoft plans to further grow its UAE infrastructure in the near future. According to the Financial Times, the company expects to secure additional GPU export licenses within the next 12 months. Furthermore, Microsoft estimates that the infrastructure investments will be accompanied by $2.4 billion in local operating expenses and the cost of goods sold. The other data center investment the company announced today will take the form of a partnership with Lambda, the operator of a cloud platform optimized for AI workloads. In February, the startup disclosed that its cloud included more than a quarter million GPUs. The same month, it raised $480 million from a consortium that includes Nvidia. The newly announced partnership will see Lambda build several billions dollars' worth of AI infrastructure for Microsoft. The project will involve tens of thousands of graphics cards, some of which are set to be deployed in GB300 NVL72 appliances. Each GB300 NVL72 includes 36 GB300 chips. Microsoft previously signed a similar AI infrastructure partnership with CoreWeave Inc., a publicly traded Lambda competitor. Last November, The Information reported that Microsoft was expecting to spend $10 billion on CoreWeave's platform by the end of the decade.

Microsoft to invest over $15 billion in UAE, secures US export licenses for AI chips

Microsoft plans to invest over $15 billion in the United Arab Emirates in the seven years to the end of 2029 and has secured export licenses from the Trump administration to ship advanced chips to the Gulf country. Microsoft plans to invest over $15 billion in the United Arab Emirates in the seven years to the end of 2029 and has secured export licenses from the Trump administration to ship advanced chips to the Gulf country, it said Monday. "The biggest share of it (the investment), by far, both looking back and looking forward, is the expansion of AI data centers across the UAE. And from our perspective, it's an investment that is critical to meet the demand here for the use of AI," Microsoft Vice Chair and President Brad Smith told Reuters in an interview on Monday. Smith said that it had secured export licenses for that work from the US government last year and had secured new licenses for this year. Smith was speaking on the sidelines of the ADIPEC energy conference in Abu Dhabi. The UAE has been spending billions of dollars to become a global AI hub, looking to leverage its strong relations with Washington to secure access to U.S. technology, such as some of the world's most advanced chips.

Microsoft to spend $15.2B in UAE by 2029; unveils AI GPU export license (MSFT:NASDAQ)

Microsoft (MSFT) said on Monday that it will invest $15.2B in the United Arab Emirates from the years 2023 through 2029 as part of its efforts to grow its business in the region. The tech giant also said it received The investment aims to expand Microsoft's business in the UAE through equity stakes, AI and cloud infrastructure, and operating expenses, expected to strengthen its local presence and partnerships. The license enables Microsoft to deliver powerful AI chips for use in advanced AI models and applications, benefiting local organizations and enhancing AI-enabled services in the UAE. Collaboration with G42 supports both public and private sector adoption of AI and cloud technologies, fostering economic growth and increasing access to advanced applications in the UAE.

Microsoft to invest $15.2bn in UAE to expand AI, cloud infrastructure

Image: Abu Dhabi Media Office Microsoft said it would invest $15.2bn in the UAE by 2029 to advance artificial intelligence and cloud infrastructure, develop local digital talent, and deepen technology cooperation between the UAE and the US. Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, was briefed by Microsoft vice chair and president Brad Smith on the company's plans to expand AI infrastructure and training programmes in the UAE, Abu Dhabi Media Office reported on November 3. "This is not money raised in the UAE. It's money we're spending in the UAE," Smith said, adding that the investment aims to bring together "technology, talent, and trust." He said Microsoft's focus was on equipping local talent to develop and deploy AI that aligns with regional needs. The investment builds on Microsoft's partnership with Abu Dhabi-based AI firm G42 and underscores growing US-UAE technology ties. G42 CEO Peng Xiao said the collaboration would "advance the frontiers of AI across industries" and "establish a new standard for cross-border collaboration rooted in trust." The plan includes more than $7.3bn in spending between 2023 and the end of 2025, comprising a $1.5bn equity investment in G42, over $4.6bn in capital expenditure on AI and cloud data centres, and $1.2bn in local operating costs. From 2026 through 2029, Microsoft expects to spend an additional $7.9bn, including $5.5bn in further data centre expansion. The company has secured export licences to import advanced NVIDIA GPUs into the UAE, providing over 80,000 A100-class chips for AI workloads. Microsoft to bridge skill gap with training Microsoft said it would also train one million people in the UAE by 2027, including 120,000 government employees and 175,000 students, and has opened a Global Engineering Development Centre and an AI for Good Lab in Abu Dhabi. The company and G42 co-founded the Responsible AI Future Foundation this year alongside the Mohamed bin Zayed University of Artificial Intelligence to promote ethical AI practices. Both nations have also signed an Intergovernmental Assurance Agreement to ensure compliance with cybersecurity, data protection, and export controls. Khaldoon Khalifa Al Mubarak, secretary general of the Artificial Intelligence and Advanced Technology Council, said the move "reflects our shared commitment to harness AI for sustainable growth, economic diversification, and opportunity for future generations." Read: ADNOC, Masdar, XRG, Microsoft to deploy AI across energy, data centre ops

Microsoft Invests $15.2 Billion to Power UAE's AI and Cloud Future

Satya Nadella Announces Microsoft's AI-First Hiring Revival Partnership with UAE-based sovereign AI company G42 anchors the deal. Microsoft holds equity in and has established local engineering and AI research centres in Abu Dhabi. The company also aims to train up to one million people in the UAE by 2027, including government employees, students, and teachers. Experts say the investment marks a shift in global . By locating central cloud and AI in the Gulf, Microsoft signals that AI-cloud growth will spread beyond traditional tech hubs. At the same time, the Papua partnership of chip exports marks a test case for how US-based firms and governments navigate export curbs while maintaining security standards. For the UAE, the deal brings more than hardware. It supports its vision of a diversified, knowledge-based economy where AI plays a central role in business, government services, and talent development. Microsoft's pledge of technology, staff, and trust is designed to bolster that strategy. In short, drives the next chapter of AI and cloud infrastructure in the UAE. The focus on data-centres, chip exports, talent building, and local partnerships ties tech ambition to practical growth on the ground.

Microsoft and G42 announce 200-megawatt data center expansion in UAE By Investing.com

Investing.com -- Microsoft and Abu Dhabi's G42 announced a 200-megawatt expansion of data center capacity in the United Arab Emirates on Wednesday, as part of an over $15 billion investment commitment by the U.S. tech giant in the Gulf country. The expansion will be delivered through Khazna Data Centers, a G42 unit, and is expected to begin operations before the end of 2026, according to a joint statement from the two companies. Microsoft revealed earlier this week that its investment in the UAE will reach $7.3 billion between 2023 and the end of 2025, with an additional $7.9 billion planned for 2026-2029. The company also announced that President Donald Trump's administration had approved the export of advanced NASDAQ:NVDA chips for its data centers in the UAE, which has been investing billions to establish itself as a global AI hub. According to the joint statement, the expansion will provide additional AI and cloud infrastructure to the UAE, "strengthening Microsoft Azure's secure, scalable, and sovereign cloud services." This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Microsoft to invest over $15 billion in UAE through 2029 By Investing.com

Investing.com -- Microsoft plans to invest more than $15 billion in the United Arab Emirates over the next seven years, with a focus on expanding artificial intelligence data centers across the country. The investment, which will run through the end of 2029, comes after Microsoft secured export licenses from the Trump administration to ship advanced chips to the Gulf nation, the company announced Monday. Microsoft Vice Chair and President Brad Smith told Reuters that the expansion of AI data centers represents the largest portion of the planned investment. "The biggest share of it (the investment), by far, both looking back and looking forward, is the expansion of AI data centers across the UAE. And from our perspective, it's an investment that is critical to meet the demand here for the use of AI," Smith said in an interview. Smith revealed that Microsoft had obtained export licenses from the U.S. government last year and secured new licenses for this year. He made these comments while attending the ADIPEC energy conference in Abu Dhabi.

Microsoft, G42 announce 200 MW data centre capacity expansion in the UAE

DUBAI (Reuters) -Microsoft and Abu Dhabi's G42 on Wednesday announced a 200-megawatt expansion of data centre capacity in the United Arab Emirates as part of an over $15 billion investment commitment by the U.S. tech giant in the Gulf country. The expansion will be delivered through Khazna Data Centers, a unit of G42, and it is expected to start coming online before the end of next year, the two firms said in a joint statement, without providing further details. Microsoft said this week its investment in the UAE will reach $7.3 billion between 2023 and the end of this year, with a further $7.9 billion earmarked for 2026-2029. It also announced that President Donald Trump's administration had approved the export of advanced Nvidia chips for its data centres in the Gulf country, which has been spending billions of dollars to become a global AI hub. Microsoft invested $1.5 billion last year to take a minority stake in G42, which is also backed by private equity firm Silver Lake, Abu Dhabi sovereign wealth fund Mubadala, and the family office of billionaire investor Ray Dalio. The expansion will provide further AI and cloud infrastructure to the UAE, "strengthening Microsoft Azure's secure, scalable, and sovereign cloud services," the two firms said on Wednesday. (Reporting by Federico MaccioniEditing by Tomasz Janowski)

Microsoft to invest over $15 billion in UAE, secures US export licenses for AI chips

ABU DHABI (Reuters) -Microsoft plans to invest over $15 billion in the United Arab Emirates in the seven years to the end of 2029 and has secured export licenses from the Trump administration to ship advanced chips to the Gulf country, it said Monday. "The biggest share of it (the investment), by far, both looking back and looking forward, is the expansion of AI data centers across the UAE. And from our perspective, it's an investment that is critical to meet the demand here for the use of AI," Microsoft Vice Chair and President Brad Smith told Reuters in an interview on Monday. Smith said that it had secured export licenses for that work from the U.S. government last year and had secured new licenses for this year. Smith was speaking on the sidelines of the ADIPEC energy conference in Abu Dhabi. The UAE has been spending billions of dollars to become a global AI hub, looking to leverage its strong relations with Washington to secure access to U.S. technology, such as some of the world's most advanced chips. (Reporting by Federico Maccioni, Editing by Louise Heavens)