What the du Hyperscale Data Centre Deal Means for Microsoft
This week, Emirates Integrated Telecommunications Company (du) revealed a deal worth AED 2 billion US$544.5m) with Microsoft specifically to develop a new hyperscale data centre.
Based in the United Arab Emirates (UAE), the new facility will be built and operated by du, with Microsoft as the main tenant. du confirmed rollout plans during Dubai AI Week, where the deal was made, with capacity set to be delivered in phases.
“This deal represents a pivotal leap in our strategic goal to revolutionise the digital ecosystem of the UAE,” Fahad Al Hassawi, CEO of du, shared.
Creating a global hub for AI
du currently operates five data centres across the UAE and has been investing significantly in this area to become a global hub for AI outside of the US.
Since the company was founded in 2006, it has been working to expand its services by offering mobile, fixed services, broadband connectivity and IPTV solutions to homes and businesses across the UAE.
Now, the company is eager to lead in digital transformation and offers a large range of digital-first services that are powered by ultra-reliable fibre and 5G technology. This is all supported by a strong partner ecosystem, which the company says delivers exceptional customer experience.
The telco also signed a deal earlier in 2025 to extend the Peace subsea cable to the UAE, hoping to extend connectivity further within the region.
When it comes to Microsoft, the tech giant has been investing in the Middle East for some time. Earlier in the year, the company partnered with the Abu Dhabi government and Core42 to deliver AI infrastructure and a sovereign cloud offering in the UAE.
It has also been developing a data centre region in the Kingdom of Saudi Arabia. Located in Saudi Arabia’s Eastern Province, Microsoft says each of the three Azure availability zones it has built feature independent power, cooling and networking infrastructure.
They will be equipped with state-of-the-art hardware to enable government and private sector companies in Saudi Arabia to run their workloads in the cloud more seamlessly with low latency and high availability options.
Microsoft’s continued investments in the region support its wider commitment to empowering organisations to achieve more, as well as adherence to its core values and ethical principles.
How Microsoft is approaching hyperscale innovation globally
Having recently celebrated its 50th birthday, the company has doubled its data centre capacity over the last three years, adding more in 2024 than any other year in history.
Microsoft remains committed to its ongoing strategy and project developments, but a company executive confirmed in April 2025 that it was slowing down and temporarily pausing advancing early build-outs.
Nevertheless, the company still has plans to spend more than US$80bn to continue building out data centre infrastructure, as demand for its cloud and AI services continues to surge.
“I am extremely proud of the work we are doing in Cloud Operations + Innovation and beyond to enable our customers with our data centre infrastructure – the infrastructure that is the backbone of the Microsoft Cloud and AI,” Noelle Walsh, President, Microsoft Cloud Operations & Innovation, recently shared on LinkedIn.
“We expect to have another record year in 2025, and our global footprint continues to expand, across 60+ regions and 350+ data centres worldwide. Customer demand for our cloud and AI services continues to increase as reflected by strong growth in revenue and customer commitments in Microsoft Cloud and AI.”
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