"We're Seeing Demand Explode": UAE, US Sign AI And Energy Pact As Microsoft To Invest $7.9B On Infrastructure

The UAE and the US have agreed to enhance cooperation in energy and artificial intelligence, focusing on advanced industrial capabilities and smart manufacturing. This partnership involves utilizing AI in robotics and automation and promoting knowledge sharing. Microsoft plans to invest over $7.9 billion in the UAE over the next four years, supporting the country's ambition to become a global tech hub. This investment includes nearly tripling the number of advanced Nvidia chips in the UAE, following US licensing approvals with strict conditions. Microsoft expects to spend $5.5 billion on cloud and AI infrastructure and $2.4 billion on hiring and operations. The UAE is strategically important for Microsoft’s global AI expansion, driving the company's data-center capacity race. Microsoft has already heavily invested in the UAE since 2023, including a substantial investment in Abu Dhabi AI company G42. OpenAI has also chosen the UAE for its first Stargate data-center project outside the US. The US continues to monitor chip access in the Gulf to prevent technology leakage to China. Microsoft's total investment in the UAE between 2023 and 2029 is projected to reach $15.2 billion.