2025-11-05
Microsoft Vows To Spend $8Bn in UAE Through 2029 on Cloud, Chips
Microsoft Corp is planning to spend more than $7.9bn on data centres, cloud computing and employees in the United Arab Emirates over the next four years, capitalising on a US government clearance to ship artificial intelligence chips to the Gulf nation.
Microsoft president Brad Smith announced the commitment on Monday in Abu Dhabi.
Microsoft president Brad Smith announced the commitment on Monday in Abu Dhabi.
The pledge includes plans to nearly triple the amount of Nvidia Corp advanced chips Microsoft will operate in the nation, bringing in critical equipment that has been restricted by the US government.
“This is not money we’re raising here. It’s money we’re investing and spending here,” Smith told Bloomberg Television at the sidelines of the ADIPEC oil conference in Abu Dhabi. “We are seeing demand here explode.”
The Middle East nation has become a frequent partner for Silicon Valley companies thanks to its ample energy, oil wealth and deepening ties with Donald Trump’s White House.
“This is not money we’re raising here. It’s money we’re investing and spending here,” Smith told Bloomberg Television at the sidelines of the ADIPEC oil conference in Abu Dhabi. “We are seeing demand here explode.”
The Middle East nation has become a frequent partner for Silicon Valley companies thanks to its ample energy, oil wealth and deepening ties with Donald Trump’s White House.
Microsoft said it was the first US company to receive Trump Administration approvals to deploy AI chips in the UAE. The company said it will invest a total of $15.2bn in the country from 2023-2029.
The software giant is spending lavishly on its cloud business and AI services, trying to fill a shortage of computing capacity. It’s one of several tech giants racing to build out AI infrastructure despite some concerns of a bubble in the industry.
Earlier on Monday, Microsoft announced a $9.7bn deal with Australian data centre operator IREN Ltd for a facility in Texas.
In the UAE, Microsoft plans to spend more than $5.5bn in capital expenditures on cloud and AI infrastructure from the start of 2026 through 2029, according to Smith. The company said it will invest another $2.4bn or so on operating expenses and local hiring.
Microsoft has been an ally in the UAE’s ambitions to diversify its economy from oil into a range of digital tech. In early 2024, Microsoft invested $1.5bn in G42, an Abu Dhabi AI firm that develops cybersecurity tools, cloud services and spacecraft. Smith joined G42’s board.
Earlier this year, OpenAI, which counts Microsoft as its biggest backer, chose the UAE as the first country outside of the US to host a Stargate data centre project.
But the Gulf state’s access to leading semiconductors has been an open question. Bloomberg reported in October that the US approved the export of chips to American companies operating in the UAE, following a bilateral deal on the tech that drew national security concerns.
The software giant is spending lavishly on its cloud business and AI services, trying to fill a shortage of computing capacity. It’s one of several tech giants racing to build out AI infrastructure despite some concerns of a bubble in the industry.
Earlier on Monday, Microsoft announced a $9.7bn deal with Australian data centre operator IREN Ltd for a facility in Texas.
In the UAE, Microsoft plans to spend more than $5.5bn in capital expenditures on cloud and AI infrastructure from the start of 2026 through 2029, according to Smith. The company said it will invest another $2.4bn or so on operating expenses and local hiring.
Microsoft has been an ally in the UAE’s ambitions to diversify its economy from oil into a range of digital tech. In early 2024, Microsoft invested $1.5bn in G42, an Abu Dhabi AI firm that develops cybersecurity tools, cloud services and spacecraft. Smith joined G42’s board.
Earlier this year, OpenAI, which counts Microsoft as its biggest backer, chose the UAE as the first country outside of the US to host a Stargate data centre project.
But the Gulf state’s access to leading semiconductors has been an open question. Bloomberg reported in October that the US approved the export of chips to American companies operating in the UAE, following a bilateral deal on the tech that drew national security concerns.
The US has yet to approve the sale of Nvidia chips to Emirati companies, including G42, Bloomberg reported earlier.
Microsoft said it received US government licenses to ship AI chips to the UAE in September after meeting security criteria. “They’re not just acts of faith,” Smith said. “We had to satisfy very strict conditions about the cybersecurity, the physical security, the other security protection of these chips to ensure that they stay under our control.”
The company said it previously deployed 21,500 chips equivalent to Nvidia’s A100 graphics processing units in the UAE under approvals from the Joe Biden Administration.
Microsoft said it received US government licenses to ship AI chips to the UAE in September after meeting security criteria. “They’re not just acts of faith,” Smith said. “We had to satisfy very strict conditions about the cybersecurity, the physical security, the other security protection of these chips to ensure that they stay under our control.”
The company said it previously deployed 21,500 chips equivalent to Nvidia’s A100 graphics processing units in the UAE under approvals from the Joe Biden Administration.
The company plans to ship 60,400 more chips equivalent to the A100, including some of Nvidia’s new GB300 product. Those will come “in months, not years,” according to Smith.
Microsoft has about 1,000 full-time engineers in the UAE and has opened an AI lab in the country. Aside from the $1.5bn deal with G42, Microsoft said it invested about $5.8bn in the UAE since the start of 2023. That means its annual spending pledge through 2029 is roughly on par with the past few years.
Microsoft has about 1,000 full-time engineers in the UAE and has opened an AI lab in the country. Aside from the $1.5bn deal with G42, Microsoft said it invested about $5.8bn in the UAE since the start of 2023. That means its annual spending pledge through 2029 is roughly on par with the past few years.
Source: GULF TIMES