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Microsoft To Invest $10Bn In AI Infrastructure In Middle East

Microsoft To Invest $10Bn In AI Infrastructure In Middle East

Microsoft To Invest $10Bn In AI Infrastructure In Middle East

Imesh Ranasinghe

Imesh Ranasinghe

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Catenaa, Wednesday, September 23, 2026- Microsoft will invest $10 billion in cloud and AI infrastructure across Kuwait, Qatar, Saudi Arabia, and the UAE now and through 2030.

Microsoft said tha they are expanding their investments in the Middle East with confidence in the region’s future as it pursues one of the world’s most ambitious AI transformations. 

The company said it will expand its local partnerships across the region and build on its work to support these countries’ governments and people through a period of significant challenges. 

The company said the $10 billion figure covers both capital and operating expenses. 

Microsoft Vice Chair and President Brad Smith told Reuters the investment reflects both ongoing infrastructure buildout and an expansion of operations in the region. “We’re sustaining all the investments we planned to make before this conflict started, and we’re in fact adding to them,” Smith said.

“These partnerships will support responsible AI adoption, sovereign-ready cloud services, Arabic and multilingual AI, and the use of AI to improve services for citizens and businesses,” the company said in a statement.

“They will be supported by capabilities including Microsoft Sovereign Public Cloud, Sovereign Private Cloud, and Project Digital Shield, where relevant and available,” it said.

In addition to the headline figure, Microsoft said it plans to spend more than $400 million on subsea and terrestrial connectivity across the Middle East by 2030. 

The company is already involved in the SeaMeWe-6 subsea cable system, which has landings in Qatar, Saudi Arabia, and the UAE, and operates a global fiber network spanning more than 275,000 miles, the company said.

The company said it would offer organizations digital resilience assessments, continuity planning, and data-protection programs in the four countries. 

According to Reuters, Smith said Microsoft had provided resilience assessments to local partners as early as the first week of the conflict, which began on February 28.

Reuters also said that Microsoft invested $1.5 billion in G42 for a minority stake in 2024.

On the sustainability side, Microsoft said it would prioritize zero-water cooling technologies for new data centers in the region where feasible, and collaborate with local governments and utilities to expand access to carbon-free electricity.

Microsoft has served the Middle East since it began operations in the region in 1991, and said it will continue to invest in AI skills, workforce readiness, public-sector capability building, and inclusive talent development across the region, building on existing commitments to help skill more than 4.2 million people by 2030.