- Microsoft and du partner to build a new hyperscale data centre in the UAE valued at $544 million.
- The project supports growing cloud demand in the Middle East and aims to accelerate digital transformation across sectors.
What happened: Microsoft has signed a $544 million agreement with UAE telecom firm du to develop a major new hyperscale data centre, signalling a major leap in the region’s cloud capabilities.
UAE-based telecom provider du, part of Emirates Integrated Telecommunications Company (EITC), has signed a $544 million agreement with Microsoft to build a hyperscale data centre in the United Arab Emirates. The strategic deal was finalised during the Dubai-hosted Make it in the Emirates Forum and marks a significant investment in the country’s digital infrastructure.
The new data centre will be developed by Datamena, a subsidiary of du and a regional leader in data centre interconnection. It will offer cloud services via Microsoft Azure and aims to address growing enterprise and public sector demands for secure, scalable cloud infrastructure. According to Fahad Al Hassawi, CEO of du, the partnership will “strengthen the UAE’s position as a regional digital hub.” Microsoft’s Naim Yazbeck, General Manager for the UAE, added the deal will help “accelerate digital transformation and innovation” across the country.
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Why it is important
The deal reflects a wider trend of hyperscale data centre growth across the Middle East, with the UAE emerging as a focal point due to its pro-digital policies and central geography. It comes amid increasing competition between global cloud providers—Amazon Web Services, Google Cloud, and Microsoft—all aiming to capture the region’s accelerating digital economy.
Microsoft’s collaboration with du also adds weight to its multi-billion-dollar global expansion strategy, as seen with similar initiatives in Saudi Arabia and Qatar. The Middle East’s data centre market is projected to grow by over 7% annually through 2028, according to Arizton.
While this is a positive move for regional tech resilience and local data sovereignty, it also reinforces Microsoft’s stronghold in government and enterprise sectors. As data becomes central to AI, fintech, and logistics innovation, partnerships like this will define who controls the infrastructure underpinning future economies.
