du and Microsoft to Build Major Data Centre in UAE

Emirates Integrated Telecommunications Company has entered into a landmark agreement with Microsoft to construct a state-of-the-art hyperscale data centre in the UAE. The project, valued at approximately 2 billion dirhams , marks a significant development in the country’s growing data infrastructure sector.

This collaboration, unveiled during Dubai AI Week, aims to create a cutting-edge facility that will offer cloud computing and data storage solutions for businesses across the region. With Microsoft as the primary tenant, the data centre is expected to scale its operations in phases, enhancing the UAE’s digital landscape over time.

Hyperscale data centres, like the one planned in partnership with Microsoft, are vast facilities designed to handle massive amounts of data, providing essential services for enterprises in various sectors, from finance to telecommunications. These centres are vital for enabling cloud-based operations and the increasing reliance on digital platforms.

Fahad Al Hassawi, CEO of du, highlighted the significance of the project, stating that the development represents a major step forward in the UAE’s ambition to lead in the global digital economy. “This deal marks a pivotal leap in our strategic goal to revolutionise the digital ecosystem of the UAE,” Al Hassawi said in his statement.

As the demand for cloud services continues to rise across the Middle East, this hyperscale data centre is poised to address the growing need for data storage, backup, and processing power. The centre will serve as a critical hub, supporting both local businesses and multinational companies looking to expand their presence in the region.

The data centre is also expected to help drive advancements in artificial intelligence , a technology that is rapidly gaining traction across various industries. By providing a robust infrastructure for AI development, the facility will bolster the UAE’s position as a leader in digital innovation. Microsoft’s involvement will bring in not only expertise in cloud technologies but also access to their vast network of global services, including Azure, which powers a wide range of enterprise solutions.

This partnership highlights the UAE’s commitment to investing in next-generation technologies to support the region’s economic diversification. With cloud computing continuing to be a fundamental driver of the digital economy, the development of such facilities is a clear reflection of the country’s long-term strategy to enhance its technological capabilities and attract international investment.

The project will further contribute to the UAE’s broader vision of becoming a global tech hub. The strategic location of the data centre in Dubai offers a significant advantage, given the city’s status as a business and logistics hub connecting Europe, Asia, and Africa. The development of this data centre aligns with the UAE’s long-standing goals of promoting innovation, sustainability, and digital transformation across multiple sectors.

The deal underscores the UAE’s efforts to improve its digital infrastructure in line with global standards. The hyperscale facility will provide businesses with enhanced access to cloud-based services, ensuring that they have the flexibility to scale operations efficiently. This is expected to benefit sectors like finance, e-commerce, and telecommunications, which are increasingly dependent on cloud technology.

The hyperscale data centre also aligns with the UAE’s broader ambitions to become a global leader in technology and digital services. As the country moves towards a knowledge-based economy, investments in data infrastructure are seen as critical to sustaining long-term economic growth. The UAE’s strategic investments in this sector are expected to have far-reaching effects on both local and international markets, with businesses set to benefit from enhanced access to cloud services and data storage.

The scale and scope of the partnership between du and Microsoft also reflect the increasing importance of international collaborations in the tech industry. Such collaborations are essential for fostering innovation and ensuring that businesses in the UAE have access to world-class technologies. By partnering with a global tech leader like Microsoft, du is positioning itself to be at the forefront of the digital revolution in the region.

As the UAE continues to expand its digital footprint, this project represents a significant step in its journey towards becoming a hub for advanced technologies in the Middle East. The hyperscale data centre will not only meet the growing demand for cloud services but also play a pivotal role in the broader development of AI and digital transformation initiatives in the region.