Microsoft, UAE’s G42 partner to expand data centers

Microsoft and Abu Dhabi-based cloud company G42 will expand the UAE’s data center capacity by 200 megawatts as part of a broader US$15.2 billion investment in the country.

The new capacity will be delivered through Khazna Data Centers, a G42 subsidiary, and is expected to come online before the end of 2026.

The companies said the expansion aims to support the UAE’s digital infrastructure and provide additional AI and cloud capabilities, including for public sector and regulated industries.

Both firms said the partnership would prioritize cybersecurity, data protection, and responsible AI development.

🔗 Source: Microsoft

🧠 Food for thought

Implications, context, and why it matters.

Khazna runs 650 MW across 30 UAE data centers, so a 200 MW lift, about 31%, reads as measured growth 1 2.
Three builds add 160 MW 2. QAJ1 in Ajman brings 100 MW with AI-focused design by December 2026, while AUH4 and AUH8 add 60 MW by late 2026 2. With Microsoft-G42 in the mix, planned plus in-progress work reaches 360 MW and could lift capacity to about 1,010 MW by end-2026 if timelines hold 3 2.
Staging lowers delivery risk, and QAJ1 uses modular, energy-efficient layouts to speed buildout 4.

Emirates Water and Electricity Company (EWEC) is adding the 1.5 GW Khazna solar photovoltaic (PV) project, awarded to ENGIE (a French energy company) with Masdar (Abu Dhabi’s state-backed renewable energy developer) 5. The plant will power 160,000 homes and avoid 2.4 million tonnes of CO2 each year 5.
A $6 billion solar plus battery site near Abu Dhabi pairs 5.2 GW with 19 gigawatt-hours (GWh) of storage 6. It will deliver 1 GW around the clock, billed as the world’s first 24-hour renewable plant, due 2027 6.
AI-optimized energy management, Internet of Things (IoT) sensors for solar monitoring, plus robotic panel cleaning fit EWEC plans to deploy advanced digital tools across the portfolio 5.
The UAE targets 18 gigawatts (GW) of solar by 2035 and 50% clean energy by 2050 7 8. Developers who grasp EWEC’s utility-scale Power Purchase Agreement (PPA) model can reach financial close on deals expected through Q4 2025 7 8.