du, a leading UAE telecom operator, has announced plans to develop a significant new hyperscale data center in partnership with Microsoft. This investment, totaling AED 2 billion ($544.54 million), signals a major push to enhance digital infrastructure in Dubai. Microsoft will be the primary tenant, supporting its Azure cloud platform needs.
The announcement, made during AI week in Dubai, emphasizes the region’s commitment to expanding digital services. “This marks a significant investment in digital infrastructure, reinforcing Dubai’s leadership in adopting the latest technologies, innovations, and digital services,” noted the Crown Prince of Dubai. Fahad Al Hassawi, CEO of du, echoed this sentiment, stating, “This deal represents a pivotal leap in our strategic goal to revolutionise the digital ecosystem of the UAE.”
This expansion will play a critical role in meeting local enterprises’ demand for increased cloud capacity. Additionally, this project aligns with stricter requirements for digital sovereignty, ensuring data adherence to UAE laws and regulations.
With rising interest in AI, cloud technologies, and sustainable infrastructure, this development underscores the region’s strategic investments in data centers. While the project represents a substantial investment, it is expected to attract more enterprise customers, pivotal for both Microsoft’s growth and du’s infrastructure and service offerings.
du already operates five data centers across the UAE. This new facility will add a vital component to their infrastructure, aiding businesses looking to scale cloud operations locally. By partnering with Microsoft, du ensures a strong anchor for this undertaking.
This collaboration is a part of a broader regional effort to enhance data infrastructure and embrace cutting-edge technologies. Governments and enterprises across the Gulf are increasingly prioritizing AI and cloud investments.