The United Arab Emirates has transformed itself from an oil giant to a technological visionary in just a few years. While the region used to rely on mining revenues, it is now turning its attention to data, cloud and artificial intelligence. This transformation will now be accelerated by Microsoft, which has announced an investment in excess of $15 billion by 2029, cementing the US giant's position in one of the world's fastest-growing markets while supporting the UAE's long-term goal of becoming the hub of the digital economy between the West and Asia.
The decision comes at a time when the US is strengthening its technological influence in the Middle East. Indeed, Donald Trump's administration has approved the export of thousands of high-end Nvidia $NVDAchips to form the heart of Microsoft's new $MSFT data centres . These devices will be the foundation of the computing infrastructure that will underpin the development of artificial intelligence in the region.
Artificial intelligence as a new engine of growth
Microsoft president Brad Smith said the vast majority of investment is going towards expanding AI and cloud centres across the UAE. "This is a critical step to meet the rapidly growing demand for the use of AI," Smith said during the ADIPEC energy conference in Abu Dhabi. The firm is betting that access to data and computing power will become the new key to economic strength - much like oil was the key to the last century.
But this expansion is not just about technology. It's also a geopolitical story in which US capital, Middle Eastern ambitions and the growing global competition for AI dominance collide. While Europe is still dealing with regulation and China faces export restrictions, the Emirates is trying to profile itself as a neutral and open hub for collaboration between the two worlds.
Partnership with G42 and US confidence
One pillar of the overall strategy is a partnership with local technology group G42, in which Microsoft invested $1.5 billion last year and won a seat on its board. G42 has come to Washington's attention in the past over concerns about its ties to China, but Brad Smith said the company has "made tremendous progress" in complying with US regulations and standards. This has opened the door to direct collaboration on the development and implementation of cutting-edge technologies, including access to advanced Nvidia chips.
A wave of chips and a new data ecosystem
Microsoft had previously received permission from the Joe Biden administration to import Nvidia A100, H100 and H200 chips, equivalent to more than 21,000 GPUs. Now comes another, even bigger wave - the Trump team has approved the export of more than 60 thousand next-generation GB300 chips, which will be shipped in a few months. These accelerators represent some of the most powerful computing in the world and will allow Microsoft to run AI models globally in the region.
Of the total investment, $7.3 billion will go towards projects by the end of this year, with the remaining $7.9 billion spread between 2026 and 2029. The money will go solely towards infrastructure and is not part of the Stargate UAE megaproject - one of the world's largest data complexes, announced earlier this year during Trump's visit to the Gulf region.
A new balance of technological power
Microsoft is thus making it clear that the future of AI will not be shaped only in Silicon Valley. The UAE is becoming a bridge between the United States and Asia, with its investment strategy showing that the world's power over data and computing is spreading to new regions. For the US, this is a strategic reinforcement of influence in a region that is geopolitically and energetically crucial.
As the global economy moves into the digital space, this investment is more than just an infrastructure expansion - it is laying the groundwork for a new phase of technological competition. And Microsoft is clearly reserving its role as one of the main architects.