Microsoft expands G42 partnership to boost cloud infrastructure in UAE

US technology giant Microsoft and Abu Dhabi-based G42 have announced the next phase of their strategic partnership to expand the existing data centre infrastructure in the Emirates.

This strategic collaboration is about “creating a holistic ecosystem for societal resilience and growth,” G42’s Chief Executive Officer Peng Xiao said.

The companies aim to transform industries and create positive economic opportunities and lasting impacts on the well-being of communities, he added.

Tuesday’s announcement of expanding partnership represents the first major outcome since the two entities revealed their intention to partner in April 2023.

The latest move will see Microsoft expanding its Azure cloud service in the UAE through Khazna Data Centres, a joint venture between G42 and e&, a Emirati-based telecoms company.

Bringing Industry-specific AI Solutions

Microsoft’s sovereign cloud offering is expected to help the UAE public sector and some other industries comply with local privacy and regulatory requirements.

Over time, the companies will also focus on bringing industry-specific AI solutions for various sectors such as health, energy and projects of national significance, including the COP28 event.

The UAE is set to host the 28th UN Climate Change Conference from November 30 until December 12 at the Expo City, Dubai, allowing meticulous discussions on the emergency.

Industry experts believe moving to a cloud system hosted by a specialised company such as Microsoft is more economical for businesses than creating their own infrastructure.

It also brings down the overall cost of ownership, with businesses paying only for the selective resources or services they use over a period of time.

“Help Organisations Responsibly Innovate”

The expanded partnership will empower public sector customers with AI solutions built on the most trusted cloud platform, Judson Althoff, Microsoft’s Chief Commercial Officer, said.

With “security and compliance as our core priorities, we have a unique opportunity to help organisations responsibly innovate” for the benefit of people across the UAE, he added.

According to a study released last October, Microsoft expects its cloud services portfolio to add about 100,000 jobs and over $39 billion to the UAE economy in the next four years.

Working on accelerating the pace of its digital transformation and improving its tech infrastructure, the UAE wants to cement its position as a global capital of the digital economy.

Compared to today’s nearly $38 billion, the national digital economy could grow to more than $140 billion in 2031, according to the Dubai Chamber of Digital Economy.