Deal announced during Dubai AI Week event.
Dubai-based telco Du has signed a $544.54 million deal with Microsoft to develop a hyperscale data center in the UAE.
Announced during Dubai AI Week, Microsoft will be the main tenant of the data center.Capacity of the data center will be delivered in "tranches" to Microsoft, according to the companies.
Details about the data center remain sparse. DCD has contacted the firms for more information.
“This deal represents a pivotal leap in our strategic goal to revolutionise the digital ecosystem of the UAE,” said Fahad Al Hassawi, CEO of Du.
Crown Prince of Dubai Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, who is also the country's deputy prime minister, and minister of defense, wrote on LinkedIn: "At Dubai AI Week, I witnessed an announcement from Du to launch a groundbreaking hyperscale data center, in collaboration with Microsoft.
"This marks a significant investment in digital infrastructure, reinforcing Dubai's leadership in adopting the latest technologies, innovations, and digital services."
Du currently operates five data centers across the country. Earlier this year, the telco signed a deal to extend the Peace subsea cable to the UAE.
Earlier this year, Microsoft partnered with the Abu Dhabi government and Core42 for AI infrastructure and a sovereign cloud offering in the UAE.
The cloud provider has one cloud region in the UAE, launched in 2019 with three availability zones across Dubai. The company also has cloud regions in Qatar and Israel. In December 2024, the company completed construction of its Saudi Arabia cloud region, set to go live in 2026, and in March 2025 announced plans for a cloud region in Kuwait.
