Microsoft has announced a significant $15.2 billion investment plan for the United Arab Emirates (UAE) over the next four years, a move unveiled during the inaugural Abu Dhabi Global AI Summit. This investment marks the first delivery of advanced Nvidia GPUs to the UAE, reflecting the country’s emerging role as a strategic partner in U.S. AI diplomacy.
Under this agreement, the U.S. has authorized Microsoft to export Nvidia chips to the UAE, effectively positioning the nation as a critical platform for U.S. export-control diplomacy and as a regional leader in artificial intelligence innovation. This development enables Microsoft to amplify its presence in the Middle East, a crucial battleground in the global race for AI supremacy.
In May, a deal was struck between former President Donald Trump and UAE President Sheikh Mohamed bin Zayed al-Nahyan to establish a substantial AI data center in Abu Dhabi, although progress was previously hindered by U.S. export regulations on high-end Nvidia chips essential for advanced AI applications.
Microsoft received the first-ever license from the U.S. Commerce Department in September to ship these chips to the UAE, igniting debates around the implications this might have on U.S. export policies, particularly concerning China, as it potentially opens pathways through an ally.
According to Microsoft, the company has undertaken extensive measures to comply with stringent cybersecurity and national security requirements associated with the licenses. This effort has allowed it to secure a total of 21,500 Nvidia A100 GPUs in the UAE, sourced from a combination of A100, H100, and H200 models.
These GPUs will help facilitate access to various AI models developed by OpenAI, Anthropic, and other open-source providers. The $15.2 billion investment figure includes expenditures that commenced in 2023 as part of a broader AI initiative in the UAE. By 2025, Microsoft anticipates spending over $7.3 billion in the region, encompassing a $1.5 billion equity stake in G42, the UAE’s sovereign AI organization, alongside over $4.6 billion for data center infrastructure.
Looking ahead, Microsoft has committed to an additional $7.9 billion in expenditures from 2026 to 2029, with $5.5 billion dedicated to ongoing and future AI and cloud infrastructure projects. The company is set to reveal further details regarding its initiatives during this week’s events in Abu Dhabi.
Beyond infrastructure investments, Microsoft emphasizes its commitment to fostering local talent and governance, aiming to train one million UAE residents by 2027, while positioning Abu Dhabi as a regional epicenter for AI research and model development. This announcement coincides with Microsoft’s separate $9.7 billion agreement with Australia’s IREN for enhanced AI cloud capabilities.
