Microsoft, in partnership with Abu Dhabi-based AI company G42, announced a significant expansion of their data center operations in the United Arab Emirates. The project will add 200 megawatts of capacity and is part of a broader plan for Microsoft to invest over $15 billion in the UAE by 2029. The expansion will be delivered through G42's subsidiary, Khazna Data Centers, with the new capacity expected to come online before the end of 2026. Microsoft Vice Chair and President Brad Smith stated the investment is about "powering the UAE's future" and building a foundation for innovation. Following the news, Microsoft shares were reported to be little changed in premarket trading.