Microsoft to invest $15 bln in UAE, gets US OK for Nvidia exports

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Microsoft to invest $15 bln in UAE, gets US OK for Nvidia chip exports

November 4, 2025

ABU DHABI,— Microsoft plans to raise its total investment in the United Arab Emirates to $15 billion by the end of 2029, as the technology company moves forward with expanding artificial intelligence and data center operations in the Gulf state, a senior company official said on Monday.

According to Microsoft Vice Chair and President Brad Smith, the majority of the funding will go toward expanding the company’s network of AI data centers across the country.

“The biggest share of the investment, both looking back and ahead, is focused on the growth of AI infrastructure throughout the UAE,” Smith said during an interview at the ADIPEC energy conference in Abu Dhabi.

Smith told Reuters that Microsoft has obtained approval from the Trump administration to export Nvidia chips for use in its data centers in the UAE, allowing the company to move ahead with its expansion plans.

He said the investment is “critical to meet the growing demand for AI capabilities in the region.”

The UAE has been pushing heavily to become a global leader in artificial intelligence, channeling billions of dollars into the sector while maintaining close cooperation with Washington to secure access to advanced U.S. technologies, including high-end semiconductors.

Microsoft’s growing role in the country follows its $1.5 billion investment last year in Abu Dhabi-based AI company G42, a deal that gave Microsoft a minority stake and a seat on the company’s board, held by Smith himself.

G42’s earlier business links with China drew scrutiny from Washington due to concerns that Beijing might indirectly gain access to advanced chips through Emirati channels.

However, G42 stated last year that it was working closely with U.S. partners and the UAE government to align its AI practices with U.S. regulatory standards. Smith said the firm had made “enormous progress” in meeting compliance requirements under U.S. law.

Asked if G42 would gain direct access to the latest American chips, Smith said he believed that would be “part of G42’s future.”

In a separate post on Microsoft’s website, Smith said export licenses approved by the Biden administration last year allowed the company to bring the equivalent of 21,500 Nvidia A100 GPUs to the UAE, consisting of A100, H100, and H200 chips.

The White House also approved an additional export batch equivalent to 60,400 A100 units, involving Nvidia’s newer GB300 GPUs, after revising certain technology safeguards.

Rep. John Moolenaar, who chairs the U.S. House Select Committee on China, raised concerns about the technology cooperation, citing ongoing ties between the UAE and China.

“I welcome closer U.S. technology collaboration with the UAE,” Moolenaar said, “but it must come with the Emiratis verifiably and irreversibly choosing America.”

Smith said the newly approved chips have not yet been delivered but will arrive “within months.” They will be used in Microsoft’s own facilities within the UAE.

By the end of this year, Microsoft will have invested about $7.3 billion in the country, with another $7.9 billion planned through 2029 to expand cloud and AI infrastructure, according to Smith’s post.

None of the disclosed $15.2 billion investment will go toward Stargate UAE, a large-scale data center complex announced earlier this year in Abu Dhabi during a visit by U.S. President Donald Trump.

(With files from Reuters)