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Microsoft and G42 to Add 200 MW of Data Center Capacity in $15 Billion UAE Investment Push

Microsoft and Abu Dhabi’s G42 announced plans on Wednesday to expand data center capacity in the United Arab Emirates by 200 megawatts, marking a major milestone in the U.S. tech giant’s $15 billion investment drive across the Gulf region.

The new capacity will be delivered through Khazna Data Centers, a G42 subsidiary, and is expected to begin operations before the end of next year, the companies said in a joint statement. The project forms part of a sweeping effort to transform the UAE into a global hub for artificial intelligence and cloud computing.

Microsoft said its total investment in the UAE will reach $7.3 billion between 2023 and the end of 2025, with another $7.9 billion planned for 2026 through 2029. The expansion underscores the deepening ties between the company and G42, following Microsoft’s $1.5 billion investment last year for a minority stake in the Abu Dhabi-based AI and cloud firm.

G42, backed by Mubadala, Silver Lake, and billionaire Ray Dalio’s family office, has emerged as one of the Middle East’s leading AI players. The UAE government has been channeling billions into the sector to boost economic diversification and technological self-reliance.

The companies also confirmed that the Trump administration has approved exports of Nvidia’s advanced chips for data centers in the Gulf country — a key step in enabling large-scale AI model training and cloud services.

“The expansion strengthens Microsoft Azure’s secure, scalable, and sovereign cloud infrastructure in the UAE,” the firms said.

Nvidia and Abu Dhabi’s TII launch first AI & robotics research hub in Middle East

Nvidia and Abu Dhabi’s Technology Innovation Institute (TII) have unveiled a joint artificial intelligence and robotics laboratory in the United Arab Emirates, the first Nvidia AI Technology Center in the Middle East. The hub will combine Nvidia’s cutting-edge computing power with TII’s applied research to accelerate work on advanced AI models and robotics platforms.

Najwa Aaraj, CEO of TII, said the lab will leverage Nvidia’s new Thor chip, designed for next-generation robotic systems. The collaboration will support TII’s work on humanoids, quadruped robots, and robotic arms, with both existing staff and new hires contributing to the effort.

TII is the applied research arm of Abu Dhabi’s Advanced Technology Research Council, which drives the UAE’s long-term strategy to become a global AI leader. The Gulf nation has poured billions into AI initiatives, including plans for one of the world’s largest data center hubs in Abu Dhabi, built with U.S. technology and Nvidia’s most advanced chips. That project, announced during President Donald Trump’s May visit, remains pending amid U.S. security concerns over the UAE’s ties with China.

Aaraj noted that TII has been using Nvidia’s GPUs to train large-scale language models for some time, with discussions on the joint lab beginning about a year ago. The new hub will host researchers from both organizations and expand staff as projects scale.

The initiative underscores both Nvidia’s push into global AI partnerships and the UAE’s ambition to position itself at the forefront of artificial intelligence and robotics innovation.

Abu Dhabi’s MGX Eyes Up to $25 Billion for AI Investments

Abu Dhabi-based investment group MGX is exploring plans to raise as much as $25 billion from third-party investors to expand its artificial intelligence portfolio, Bloomberg News reported, citing sources familiar with the matter. The group, already backed by Mubadala Investment Co and AI firm G42, would retain these as its main supporters while seeking additional funding from both domestic and international financial and strategic investors.

MGX, chaired by Sheikh Tahnoon bin Zayed Al Nahyan — the UAE’s national security adviser and brother of President Sheikh Mohammed bin Zayed — has existing stakes in OpenAI and Elon Musk’s xAI. The potential fundraising aims to accelerate its role in the global AI race. No final decision on the plan has yet been made.

The news follows reports from the Financial Times that French AI startup Mistral is in talks with MGX and other investors to secure $1 billion in funding at a $10 billion valuation, further highlighting the UAE’s growing influence in AI investments.