- Du signs agreement with Microsoft and Nokia to develop AI infrastructure across its data centers
- The partnership aims to meet growing regional demand for generative AI services and sovereign cloud
What happened: Du signs AI deal with Microsoft and Nokia
UAE telecom provider du, part of Emirates Integrated Telecommunications Company (EITC), has signed an agreement with Microsoft and Nokia to upgrade its AI hosting infrastructure. The move will expand du’s cloud and data centre capabilities to support the increasing demand for generative AI across the public and private sectors. Microsoft will provide Azure services tailored for sovereign environments, while Nokia will deliver optical transport solutions to interconnect du’s data centres nationwide.
Saleem Alblooshi, Chief Technology Officer at du, said the project will “enable AI development at scale” and serve the needs of developers, enterprises, and government clients. The initiative was announced during a signing ceremony in Dubai with senior leaders from all three companies. The new system is expected to support compliance with local data regulations while providing scalable, high-performance environments for AI workloads.
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Why it’s important
The UAE has taken an assertive stance on digital self-reliance, with du’s infrastructure expansion reflecting this national priority. By hosting generative AI models and processing domestically through sovereign cloud, the company addresses growing concerns about data localisation, security, and AI ethics. This aligns with wider Gulf regional developments, including Saudi Arabia’s launch of SCAI Data and Qatar’s national AI governance efforts.
Involving Nokia also signals that data transport bandwidth is becoming central to AI deployment. As AI models require high throughput and low latency, operators are increasingly turning to next-generation fibre and optical solutions. Microsoft’s presence ensures compatibility with global Azure OpenAI services while adapting to local compliance.
The collaboration strengthens du’s role in the UAE’s broader digital strategy. It positions the company to compete with international hyperscalers by offering locally compliant AI services. For enterprises and developers operating under UAE jurisdiction, this initiative may offer a viable alternative to offshore cloud and model access.
