Microsoft's Big Bet on UAE's AI Future
A Major Financial Commitment
Microsoft is set to invest over $15 billion in the United Arab Emirates (UAE) by 2029. This significant investment aligns with the UAE's ambition to become a global leader in artificial intelligence (AI).
Building AI Data Centers
Most of the investment will go toward building AI data centers in the UAE. These centers are crucial for powering advanced AI technologies.
"Most of the money will go into building AI data centers in the UAE." — Brad Smith, Microsoft Executive
Brad Smith, a top executive at Microsoft, shared this news during an energy conference in Abu Dhabi.
Microsoft and G42: A Strategic Partnership
Last year, Microsoft spent $1.5 billion to become part of G42, a UAE-based AI company. This deal gave Microsoft a seat on G42's board. However, G42's past ties to China have raised concerns in Washington about potential access to advanced U.S. technology.
G42 has assured that they are working with U.S. partners and the Emirati government to comply with all regulations. Smith believes G42 has made significant progress and may soon gain direct access to the most advanced U.S. chips.
U.S. Approval for Advanced Computer Chips
Microsoft has already received U.S. government approval to bring Nvidia-made advanced computer chips into the UAE. These chips are essential for data centers. The latest approval allows Microsoft to use these chips in their own data centers in the UAE.
Investment Timeline
- By the end of 2024: Microsoft will have invested $7.3 billion in the UAE.
- 2025-2029: They plan to invest an additional $7.9 billion in AI and cloud infrastructure.
The Stargate UAE Project
The $15.2 billion investment does not include the Stargate UAE project—a massive data center hub planned for Abu Dhabi. This project was announced during a visit by former U.S. President Donald Trump in 2017.