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du plans for AI-driven data center with Microsoft

du noted that new AI data center facility will enhance the company’s existing network of data centers across the UAE.

In sum – what you need to know:

New AI data center with Microsoft – Emirati telco du will build a AED 2 billion ($544 million) hyperscale data center in the UAE, boosting national cloud and AI capabilities in partnership with Microsoft.

Digital transformation strategy – The project supports Dubai’s AI ambitions and du’s broader tech push.

National and regional impact – The new center and 5G-A deployments aim to position the UAE as a regional leader in AI infrastructure.

Emirati-based telco du has unveiled plans for a state-of-the-art hyperscale data center in the United Arab Emirates (UAE), representing a major step forward in the country’s ambition to become a global hub for artificial intelligence (AI) and advanced digital infrastructure.

Valued at AED 2 billion ($544.54 million), the data center project will be developed in partnership with Microsoft. The Arab telco noted that new facility will enhance du’s existing network of data centers across the UAE, offering expanded capabilities in cloud computing and large-scale data storage.

Built in phases, the data center is designed to meet the growing need for digital capacity, AI-powered applications, and sovereign cloud solutions in the country and the region. Under the terms of the project, Microsoft will use the center’s advanced computing infrastructure to support its cloud services and future technologies.

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, said: “This initiative represents a significant investment in digital infrastructure, strengthening Dubai’s position at the forefront of innovation, technology, and digital services.”

du’s CEO Fahad Al Hassawi added: “This agreement represents a transformative step in our mission to reshape the UAE’s digital landscape.”

The firm noted that the launch of this new hyperscale data center aligns with the goals of the Dubai Universal Blueprint for Artificial Intelligence, introduced in 2024.

The carrier operates five data centers across the UAE.

Last month, the Arab telco announced a collaboration with Microsoft during Mobile World Congress Barcelona. The collaboration will see Microsoft Azure’s innovative security stack integrate with du Tech’s managed services to offer businesses a comprehensive 360-degree security solution within the UAE.

At the heart of this collaboration is the integration of Large Language Model (LLM) capabilities into du Tech’s cybersecurity offerings, allowing customers to seamlessly harness the power of AI use cases without the need of managing the underlying infrastructure.

The collaboration promises to offer an enhanced suite of managed security services, including Security Copilot-based threat detection and response, LLM services, AI-driven predictive security insights, Microsoft Defender Advanced Threat Protection (ATP) integration, and du Tech’s specialized services encompassing monitoring and incident response.

The operator is currently in the process of deploying 5G-Advanced (5G-A) technology in Dubai as part of its national rollout program, Hasan Alshemeili, the telco’s head of infrastructure technology planning, had said during a keynote session at Huawei’s Global Mobile Broadband Forum 2024 (MBBF 2024), which took place in October 2024 in Istanbul, Turkey.

The executive noted that the company has already deployed hundreds of 5G-A base stations while its plans for the whole country stipulate the deployment of thousands of base stations.

The UAE carrier previously stated that its 5G-Advanced strategy includes the deployment of this technology in the main cities across the United Arab Emirates (UAE) in 2025 and achieving national coverage by 2026.

The company had carried out 5G-A trials in October 2023, which paved the way for the initial commercial launch of the technology in January 2024. It had initially launched 5G services in 2019 and 5G SA technology in 2023.

The Arab telco had previously signed a Memorandum of Understanding (MoU) with Huawei to boost 5G-A technology in the UAE. The project, dubbed “5G-A Country,” seeks to accelerate the digital transformation of the Arab country, according to Huawei.

ABOUT AUTHOR

Juan Pedro Tomás
Juan Pedro Tomás
Juan Pedro covers Global Carriers and Global Enterprise IoT. Prior to RCR, Juan Pedro worked for Business News Americas, covering telecoms and IT news in the Latin American markets. He also worked for Telecompaper as their Regional Editor for Latin America and Asia/Pacific. Juan Pedro has also contributed to Latin Trade magazine as the publication's correspondent in Argentina and with political risk consultancy firm Exclusive Analysis, writing reports and providing political and economic information from certain Latin American markets. He has a degree in International Relations and a master in Journalism and is married with two kids.