Microsoft to Launch UAE Data Site for $544M

In a landmark move to bolster the United Arab Emirates' (UAE) digital infrastructure, Microsoft and Emirates Integrated Telecommunications Company PJSC (du) have announced a collaboration to develop a hyperscale data center in Dubai. The project, valued at approximately $544.54 million (AED 2 billion), was unveiled during Dubai AI Week, underscoring the nation's commitment to becoming a global hub for artificial intelligence (AI) and cloud computing.

• Investment Value: Approximately $544.54 million (AED 2 billion)

• Primary Tenant: Microsoft

• Location: Dubai, United Arab Emirates

• Announcement Venue: Dubai AI Week

• Operational Model: Capacity to be delivered in phases

• Strategic Objective: Enhance the UAE's digital ecosystem and AI capabilities.

The hyperscale data center will be constructed and operated by du, with Microsoft serving as the main tenant. The facility's capacity will be delivered in tranches, aligning with the growing demand for large-scale data storage and cloud computing services in the region. ​

Fahad Al Hassawi, CEO of du, stated, "This deal represents a pivotal leap in our strategic goal to revolutionize the digital ecosystem of the UAE."

The UAE has been actively investing in digital infrastructure to position itself as a leader in AI and cloud services. This partnership between DU and Microsoft is a testament to the nation's vision of fostering innovation and technological advancement

Crown Prince of Dubai, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, remarked on LinkedIn, "At Dubai AI Week, I witnessed an announcement from du to launch a groundbreaking hyperscale data center, in collaboration with Microsoft. This marks a significant investment in digital infrastructure, reinforcing Dubai's leadership in adopting the latest technologies, innovations, and digital services."

• Enhanced Cloud Services: The data center will support Microsoft's cloud infrastructure, offering scalable and reliable services to businesses across the region.

• AI Development: By providing robust computing capabilities, the facility will accelerate AI research and deployment in various sectors.

• Economic Growth: The project is expected to create job opportunities and attract further investments in the tech industry.

• Sustainability: Modern data centers often incorporate energy-efficient technologies, aligning with global sustainability goals.

As the UAE continues to advance its digital transformation agenda, collaborations like the one between du and Microsoft are crucial. The hyperscale data center is poised to become a cornerstone in the nation's technological infrastructure, supporting a wide range of digital initiatives and services.​

With the growing demand for cloud computing and AI solutions, the facility will play a vital role in meeting the needs of businesses and government entities, further solidifying the UAE's position as a global technology leader.