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Microsoft, G42 Unveil 200 MW UAE Data Center Expansion as U.S. Licenses Clear Nvidia Blackwell Shipments

The expansion signals Microsoft’s $15.2 billion plan to pair U.S.-licensed Nvidia GPUs with sovereign Azure capacity under strict security safeguards.

Overview

  • The build will be delivered through Khazna Data Centers and is slated to start coming online before the end of 2026, strengthening Azure’s sovereign cloud in the country.
  • Licenses approved in September authorize shipments equal to 60,400 A100 GPUs, explicitly including Nvidia’s GB300/Blackwell series, under stringent security safeguards.
  • Microsoft’s UAE program totals $15.2 billion from 2023 to 2029, with $7.3 billion by end-2025 and a further $7.9 billion planned for 2026 to 2029 across infrastructure and operations.
  • The imported accelerators will power access to models from OpenAI, Anthropic, open-source providers and Microsoft’s Copilot services, with cybersecurity and physical controls to keep hardware under Microsoft’s control.
  • Investors responded to the approvals and buildout plans, with Nvidia shares rising about 2.2% after the export clearance was reported.