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du and Microsoft Sign AED 2 Billion Agreement for Hyperscale Data Centre in UAE

ByNeelima N M
2025-04-24.4 days ago
du and Microsoft Sign AED 2 Billion Agreement for Hyperscale Data Centre in UAE
du and Microsoft Sign AED 2 Billion Agreement for Hyperscale Data Centre in UAE

Emirates Integrated Telecommunications Company PJSC (du) signed a deal with Microsoft to build a hyperscale data center in the United Arab Emirates worth an estimated AED 2 billion ($544.54 million), as reported by Reuters. It was announced in Dubai AI Week, highlighting the UAE's intent to become an international hub of technology and artificial intelligence.

A New Era of Digital Infrastructure

The hyperscale data center is set to be constructed and operated by du with Microsoft as the anchor tenant. The center will provide Microsoft's increasing cloud and AI infrastructure requirements in the region. Capacity will be provided in phases for scalability to accommodate future demand for cloud computing and enterprise services.

Supporting the UAE's Digital Ambitions

du CEO Fahad Al Hassawi said, "The deal, made during Dubai AI Week, "represents a pivotal leap in our strategic goal to revolutionise the digital ecosystem of the UAE.”

The initiative is in line with the UAE's vision to diversify its economy by investing in digital infrastructure, supporting its vision to become a global leader in artificial intelligence and cloud technologies outside the United States.

Enlarging du's National Footprint

According to Reuters, with five existing data centers across the UAE, du is already a key player in the nation’s digital infrastructure. The addition of this hyperscale facility significantly expands du’s operational capacity and positions it as a leading infrastructure provider in the region.

Also read: Net Zero Data Center Alliance Launches to Deliver Sustainable, Bio-Farm-Integrated AI Infrastructure

Powering AI and Cloud at Scale

Hyperscale data centers are critical to providing cloud storage, processing capacity, and AI capability at scale. The facility will help enterprises and government institutions throughout the UAE drive digital transformation, embrace smart services, and realize the potential of new technologies.

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