Microsoft is doubling down on its Middle East strategy, committing more than $10 billion to build out cloud and AI infrastructure across the United Arab Emirates, Saudi Arabia, Qatar, and Kuwait.
The commitment runs through 2030, according to Brad Smith, Microsoft’s Vice Chair and President, who told Reuters the investment is part of an “aggressive spending schedule.” This is happening while the Iran war continues, a conflict that has already seen attacks on data centers in Bahrain and the UAE.
Gulf nations are betting big on becoming global AI hubs, leveraging cheap energy and abundant land to attract tech giants. Microsoft fits into this ecosystem by expanding partnerships with local AI firms like Abu Dhabi’s G42, a company in which it holds a minority stake worth $1.5 billion.
Security remains a wildcard. Smith noted that Microsoft is prioritizing digital resilience, helping local partners with critical data protection. The company is also pouring over $400 million into subsea and terrestrial connectivity across the region to keep the digital lifeline open.