Emirates Integrated Telecommunications Company PJSC (du) announced a 2 billion dirhams ($544.54 million) agreement with Microsoft (MSFT, Financials) to develop a new hyperscale data center in the United Arab Emirates.
The center, unveiled during Dubai AI Week, will have Microsoft as the main tenant, with capacity delivered in phases. Hyperscale data centers are large facilities designed to provide cloud computing and data storage services for businesses at scale.
Du, which currently operates five data centers across the UAE, said the project represents a step forward in its strategy to support the country's digital transformation efforts. The UAE has been investing heavily in technology and infrastructure to position itself as a global hub for artificial intelligence outside the United States.
The project cost is approximately 2 billion dirhams, based on an exchange rate of 1 US dollar to 3.6728 UAE dirhams. The expansion is expected to strengthen Microsoft's presence in the region's growing cloud services market.
The partnership underscores the rising collaboration between global technology companies and Middle Eastern telecommunications operators as the region accelerates its digitalization efforts.
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