BUSINESS – Microsoft plans to invest more than $10 billion across the United Arab Emirates, Saudi Arabia, Qatar and Kuwait through 2030, expanding its cloud and artificial intelligence infrastructure while placing greater emphasis on digital resilience amid the ongoing Iran war.
According to Reuters, Microsoft Vice Chair and President Brad Smith said the investment reflects the company’s continued infrastructure expansion as well as the growth of its regional operations. The planned spending includes both capital and operating expenses, although Microsoft has not disclosed how the money will be divided among the four countries.
“We’re sustaining all the investments we planned to make before this conflict started, and we are in fact adding to them … It’s an aggressive spending schedule,” Smith told Reuters.
The decision comes as Gulf governments accelerate efforts to develop AI capabilities and reduce their economies’ dependence on oil and gas. Abundant land and relatively inexpensive energy have made the region increasingly attractive to major technology companies seeking locations for large-scale data centers and computing infrastructure.
However, the region’s technology ambitions face challenges. The ongoing conflict has created uncertainty around infrastructure security, while attacks have affected data centers and other critical facilities. Access to advanced AI chips is another issue as demand for computing power continues to rise.
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Microsoft is therefore making digital resilience a central part of its regional strategy. The company is working with Gulf partners on resilience assessments, preparedness measures and the protection of critical data, aiming to help organizations maintain essential digital services during disruptions.
Connectivity is another major component of the plan. Microsoft expects to invest more than $400 million in subsea and terrestrial telecommunications infrastructure across the Middle East by 2030. The company is already involved in the SeaMeWe-6 subsea cable system, which has landing points in Qatar, Saudi Arabia and the UAE.
Microsoft is also expanding partnerships with regional AI companies. It invested $1.5 billion for a minority stake in Abu Dhabi-based G42 in 2024, giving Microsoft a seat on the company’s board, currently held by Smith. The company is also working with Saudi Arabia’s Humain and Qatar’s Qai on selected priorities, although Smith said Microsoft does not plan to make capital investments in those firms.
With Gulf states pursuing ambitious AI strategies, Microsoft’s expanded spending places infrastructure, connectivity and resilience alongside computing power as key parts of the region’s digital transformation.
