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The facility will be delivered in phases and is aimed at meeting rising demand for AI, cloud, and digital services in the region
UAE operator du has unveiled plans for a new hyperscale data centre worth AED 2 billion ($544.54 million) with Microsoft confirmed as the lead tenant at AI week in Dubai.
“This marks a significant investment in digital infrastructure, reinforcing Dubai’s leadership in adopting the latest technologies, innovations, and digital services,” said the Crown Prince of Dubai in a LinkedIn post.
“This deal represents a pivotal leap in our strategic goal to revolutionise the digital ecosystem of the UAE,” echoed Fahad Al Hassawi, CEO of du.
As lead tenant, Microsoft is expected to occupy a significant share of capacity to support its Azure cloud platform, helping to anchor the project and attract other enterprise customers.
du already operates five data centres across the UAE and said the new site will provide more capacity for businesses looking to scale cloud operations locally, while meeting requirements around digital sovereignty, ensuring that data is stored and managed in line with national laws and regulatory frameworks.
The announcement reflects a wider push in the Gulf to invest in data infrastructure, as governments and enterprises ramp up efforts around AI, cloud and sustainability.
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