Microsoft and Abu Dhabi based G42 revealed a joint project to build an additional 200 megawatts of AI data centre capacity in the United Arab Emirates, as part of a larger investment programme exceeding 15 billion. The expansion via Khazna Data Centers is expected to start operations by end 2026. The initiative includes US export approvals for advanced chips and supports Azure secure cloud offering. Analysts say this highlights the UAE ambition to become a global AI hub and reflects the geopolitical shift toward regional compute sovereignty.