du and Microsoft Partner to Build $544.5M High-Performance Data Center in Dubai

In a strategic move aimed at accelerating the UAE’s digital transformation, Emirates Integrated Telecommunications Company (du) has signed a landmark agreement with Microsoft to develop a state-of-the-art hyperscale data center in Dubai. The deal is valued at AED 2 billion (approximately USD 544.5 million) and was finalized during Dubai’s AI Week.

The announcement was shared by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, via a post on X (formerly Twitter), emphasizing the UAE’s ongoing commitment to being a global leader in adopting cutting-edge digital technologies and innovations.

Advancing AI and Tech Talent in Dubai

In tandem with the data center agreement, the University of Birmingham Dubai launched the first doctoral program in Artificial Intelligence in the city. The program is designed to nurture specialized talent in critical areas such as smart city development, advanced healthcare systems, sustainability, and future mobility solutions.

During AI Week, Sheikh Hamdan also met with representatives of the inaugural companies awarded the Dubai AI Seal—a newly introduced certification that recognizes trusted and ethical AI practices in the private sector.

A National Push for AI Integration

Dubai has been actively implementing initiatives to fast-track the adoption of artificial intelligence across sectors. Last year, the city introduced a plan aimed at adding AED 100 billion (USD 27.22 billion) to its economy through digital transformation. The initiative aligns with the goals of the Dubai Economic Agenda (D33), targeting a 50% increase in productivity via innovation and the deployment of smart technologies.

The strategy also aims to create a competitive, business-friendly ecosystem for global AI companies and top talent by enhancing digital infrastructure, streamlining regulations, and fostering a supportive innovation landscape.
A major objective of this roadmap is to establish Dubai as a global leader in governmental AI adoption, with public institutions across the emirate integrating artificial intelligence tools into their future projects and services.