The Abu Dhabi government is partnering with Microsoft and Core42 for AI infrastructure and a sovereign cloud offering in the United Arab Emirates (UAE).
The multi-year agreement was signed by Ahmed Tamim Hisham Al Kuttab, chairman of the chairman of Abu Dhabi's Department of Government Enablement, Microsoft CEO Satya Nadella, and Peng Xiao, group CEO of G42, Core42's parent company.
Between them, they aim to establish a sovereign cloud computing environment capable of processing more than 11 million digital interactions daily between Abu Dhabi's government entities, citizens, and businesses.
Al Kuttab said: “Technology has the power to transform how governments interact with people, making services more efficient, intuitive, and impactful. This partnership is a critical milestone in our digital transformation. By combining Microsoft's cloud technologies, G42's AI expertise, and the Government’s strategic vision, we are helping to enable a powerful platform that will redefine government services."
Nadella added: "AI will transform how governments operate and serve their citizens everywhere, and Abu Dhabi is leading the way. Through our partnership with the Department of Government Enablement – Abu Dhabi and G42, we are setting a standard for AI adoption in the public sector, as we help Abu Dhabi become the world’s first AI-native government."
Abu Dhabi aims to automate 100 percent of its government processes and has committed to investing $3.54 billion in digital infrastructure through the Abu Dhabi Government Digital Strategy 2025-2027. That strategy will see more than 200 AI-driven solutions deployed for public service efficiency.
G42's Xiao said of the partnership: "Core42’s Sovereign Public Cloud, powered by Azure and enhanced by our sovereign controls platform, Insight, enables government entities to maintain data sovereignty while harnessing hyperscale innovation. This initiative goes beyond a technological leap; it is a commitment to building a resilient, future-ready digital infrastructure for AI modernization across Abu Dhabi government entities and sets a global benchmark for innovation.”
In 2023, Microsoft and G42 partnered up, announcing plans to set up a sovereign cloud platform that would use Khazna’s data centers. Khazna is a joint venture between G42 and e&.
The following year, Microsoft invested $1.5 billion in G42, taking a minority stake in the UAE cloud and AI company.
Microsoft has one cloud region in the UAE, launched in 2019 with three availability zones across Dubai. The company also has cloud regions in Qatar and Israel. In December 2024, the company completed construction of its Saudi Arabia cloud region, set to go live in 2026, and earlier this month announced plans for a cloud region in Kuwait.
Earlier this year, Oracle announced it would be increasing its investment in Abu Dhabi "five-fold" to expand its cloud and AI offerings in the UAE.
