Microsoft is set to make a major leap in the Middle East’s technology landscape, announcing plans to expand its total investment in the United Arab Emirates to more than $15 billion by 2029. The U.S. tech giant has also secured export licenses from the Trump administration to supply Nvidia’s cutting-edge AI chips for its data centers in the Gulf nation.
This move underscores both Washington’s strategic technology diplomacy and the UAE’s ambitions to become a global artificial intelligence powerhouse, as the nation continues to pour billions into AI infrastructure, research, and innovation.
AI Data Centers at the Core of Microsoft’s UAE Expansion
“The biggest share of the investment, by far, is the expansion of AI data centers across the UAE,” said Brad Smith, Microsoft’s Vice Chair and President, during an interview at the ADIPEC energy conference in Abu Dhabi.
Smith highlighted that the growing demand for AI-driven solutions across industries—from energy to healthcare—necessitates advanced computing capabilities in the region.
“From our perspective, it’s an investment that is critical to meet the demand here for the use of AI,” he added.
Export Green Light: Washington’s Calculated Approval
The new round of chip export approvals from the Trump White House marks a significant policy shift, given U.S. concerns about technology transfers to nations with strong ties to China.
Last year, the Biden administration granted Microsoft permission to import the equivalent of 21,500 Nvidia A100 GPUs, combining A100, H100, and H200 chips.
Now, a further 60,400 A100-equivalent Nvidia GB300 GPUs have been cleared for export to the UAE, reflecting revised safeguards to ensure U.S. technological oversight.
Smith noted that the latest shipments “will be used in Microsoft’s own UAE-based data centers,” with delivery expected “within a matter of months.”
Partnership with G42: Progress Amid Scrutiny
Microsoft’s relationship with Abu Dhabi’s AI firm G42 remains central to its UAE operations. The company invested $1.5 billion last year to acquire a minority stake and a board seat in G42—a move seen as a bridge between U.S. tech leadership and Emirati innovation.
However, G42’s past connections with China have raised eyebrows in Washington, triggering questions about Beijing’s indirect access to advanced semiconductors.
Smith said G42 has made “enormous progress” in aligning with U.S. compliance standards and AI governance frameworks. “I think direct access to the most advanced chips will be part of G42’s future,” he suggested.
U.S. Lawmakers Call for Strategic Caution
Despite growing cooperation, some U.S. lawmakers remain cautious.
John Moolenaar, Chairman of the U.S. House Select Committee on China, remarked:
“The UAE and China maintain a close technology partnership… Closer U.S.-UAE collaboration is welcome, but it must come with the Emiratis verifiably and irreversibly choosing America.”
The statement reflects ongoing debates in Washington about how to balance AI competition with China while maintaining strategic partnerships in the Middle East.
Massive AI Infrastructure Investment Ahead
According to Smith, Microsoft will have invested $7.3 billion in the UAE between 2023 and 2025, with an additional $7.9 billion slated through 2029.
These funds will primarily support the expansion of cloud computing and AI infrastructure, strengthening the UAE’s role as a regional hub for emerging technologies.
Notably, the $15.2 billion commitment does not include the Stargate UAE project, one of the world’s largest planned data center hubs. The project—unveiled during President Donald Trump’s Gulf visit in May—represents a separate but complementary initiative aimed at making the UAE a leader in global data services.
Strategic Impact: U.S.-UAE Tech Alignment
Microsoft’s massive investment signals a new era of U.S.-UAE technological collaboration, driven by mutual interest in AI leadership and digital infrastructure development.
As global competition over advanced chips and data sovereignty intensifies, the deal not only solidifies Microsoft’s footprint in the Middle East but also serves as a geopolitical statement of trust and alignment between Washington and Abu Dhabi.
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