Microsoft and neocloud provider G43 have announced a 200-megawatt (MW) expansion of datacentre capacity in the United Arab Emirates (UAE) as they look to boost the nation’s digital transformation.

The move, which is expected to begin by the end of next year, aims to provide the UAE with world-class cloud and AI infrastructure, strengthening Microsoft Azure's sovereign cloud services in the region.

The firms said the expansion will support the development of advanced GPU and AI capabilities to enable public sector organisations, regulated industries and enterprises to innovate, scale and operate with agility and resilience.

The initiative is part of Microsoft's announcement of a £10.5 billion investment in the UAE.

The data centre expansion Khazna Data Centres, a subsidiary of UAE-based G42.

In a statement, the companies emphasised that the initiative will be based on the “highest standards of cybersecurity, data protection and ethical AI.”

The partnership has already established the Global Engineering Development Centre and the AI for Good Lab in Abu Dhabi, with the firms strengthening collaborations with the government and educational institutions to boost digital adoption across the country.

In February, Microsoft, G42 and the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) created the Responsible AI Future Foundation, which aims to serve as a global model for responsible AI development and governance.

Brad Smith, vice chair and president of Microsoft, said: “By combining Microsoft global expertise with G42’s local leadership and broadening role as an international neocloud enterprise, we’re building the foundation for innovation that will bring new opportunities to people across the country.”

Peng Xiao, chief executive of G42 Group, said that the partnership aims to advance the company's mission to build the Intelligence Grid, a connected digital infrastructure that serves to further develop AI.

“As a neocloud enterprise born in Abu Dhabi, G42 is advancing systems that are sovereign, secure, and open to global collaboration, keeping technology human by design,” he added.

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