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Microsoft Commits $15.2 Billion Investment in UAE to Boost AI Expansion

Prime Highlights 

  • Microsoft announced a $15.2 billion investment in the United Arab Emirates over the next four years, marking one of the largest technology investments in the region. 
  • The initiative aims to make Abu Dhabi a regional hub for AI research and innovation, including plans to train one million UAE residents by 2027. 

Key Facts 

  • The deal includes the first-ever export of advanced Nvidia GPUs to the UAE, enabled by a U.S. government license allowing Microsoft to ship A100, H100, and H200 models. 
  • Of the total investment, $7.3 billion has already been spent since 2023, with an additional $7.9 billion planned through 2029. 

Background 

Microsoft announced a major $15.2 billion investment in the United Arab Emirates over the next four years during the first Abu Dhabi Global AI Summit on Monday. The move marks one of the largest technology investments in the region and includes the first-ever shipment of advanced Nvidia GPUs to the UAE.

As part of the agreement, the U.S. government granted Microsoft a license to export Nvidia chips to the country. This decision positions the UAE as both a testing ground for U.S. export-control policies and a strategic base for American influence in artificial intelligence.

The partnership lets Microsoft expand its presence in the Middle East, a key region in the global race for AI leadership. Earlier, President Donald Trump and UAE President Sheikh Mohamed bin Zayed Al Nahyan agreed to build an AI data center campus in Abu Dhabi, but export restrictions on Nvidia chips delayed the project.

In September, Microsoft became the first company to secure a U.S. Commerce Department license to send these chips to the UAE. The company has set up the same power as 21,500 Nvidia A100 GPUs in the country, using A100, H100, and H200 models to run AI services for OpenAI, Anthropic, and others.

The $15.2 billion program comprises $7.3 billion that has already been spent since 2023 and a further $7.9 billion that will be invested until ​‍​‌‍​‍‌​‍​‌‍​‍‌2029. The funds will go toward expanding data centers, AI infrastructure, and talent development.

Beyond technology, Microsoft aims to train one million UAE residents by 2027 and make Abu Dhabi a regional center for AI research and innovation. The announcement coincides with a separate $9.7 billion deal Microsoft signed with Australia’s IREN for AI cloud capacity.