Microsoft said on Nov. 3 it will invest $7.9 billion in the United Arab Emirates (UAE) between 2026 and 2029, after securing approval from the United States to export advanced Nvidia chips for its data centers in the Gulf state.
It brings the U.S. software giant’s total investment in the UAE to $15.2 billion, building on a 2023 initiative with G42, the UAE’s state-backed artificial intelligence firm. Under the plan, Microsoft aims to expand cloud computing capacity, train local talent, and strengthen AI governance.
Microsoft said it has already spent about $7.3 billion in the UAE since 2023, including a $1.5 billion equity stake in G42, $4.6 billion in building AI and cloud infrastructure, and $1.2 billion in operating costs.
The further investment of $7.9 billion includes about $5.5 billion in capital expenses for new and expanded data centers.
The news coincides with the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) this week, bringing together global energy leaders, innovators, and policymakers.
Microsoft said it received licenses from the U.S. Commerce Department to ship Nvidia’s powerful graphics processing units (GPUs) to the UAE. Those licenses allowed it to accumulate the equivalent of 21,500 Nvidia A100 chips based on a mix of A100, H100, and H200 processors.
In September, the company obtained additional licenses under the Trump administration to export Nvidia’s new GB300 GPUs, equivalent to about 60,400 A100 chips, after agreeing to what Microsoft described as “updated and stringent technology safeguards.”
Trump Rules Out China Chip Sales
The U.S. approval for Microsoft’s exports comes as President Donald Trump reiterated that he would not allow Nvidia’s most advanced chips to be sold to China.He said giving China access to such chips would give it “an equal advantage” in the AI race.
Microsoft said part of its UAE investment will focus on developing local AI talent. The company employs nearly 1,000 staff in the country, representing 40 nationalities, and works with 1,400 Emirati partner firms that together employ about 45,000 people.
Its new Global Engineering Development Center in Abu Dhabi is designed to attract international engineers and develop AI models for key industries, while a new AI for Good Lab works with regional researchers and nonprofits on humanitarian projects.
Microsoft said it is on track to meet its pledge to train one million people in the UAE by 2027. The company said it launched an initiative UAE government entities last month to upskill 120,000 government workers, 175,000 students, and 39,000 teachers.
Microsoft and G42 in April established a binding intergovernmental assurance agreement to align with U.S. standards on cybersecurity, export controls, and responsible AI. The accord, developed in consultation with U.S. and UAE officials and lawmakers, sets compliance rules for data protection and technology transfer.