Microsoft and G42 will expand UAE data center capacity by 200 megawatts as part of Microsoft's $15 billion regional investment.

Microsoft and Abu Dhabi's G42 on Wednesday announced a 200-megawatt expansion of data centre capacity in the United Arab Emirates as part of an over $15 billion investment commitment by the U.S. tech giant in the Gulf country.

In 2023, Microsoft partnered with an Abu Dhabi-based company called Group42 to grow its UAE data center presence. The tech giant disclosed today that it will have invested more than $7.3 billion in the partnership by the end of the year. Over half the sum was allocated to capital expenditures, a line item that includes data center infrastructure.

Microsoft has withdrawn its proposal for a data center in Caledonia. The decision was made in response to opposition from local residents and officials. The company remains committed to investing in Southeast Wisconsin and may seek an alternative site.

The campus will use a closed-loop liquid cooling system that minimizes water use and reduces energy consumption.

Microsoft has denied claims that its data center in central Mexico is tied to a recent spate of power outages, water shortages, and health concerns, claiming it always prioritizes the needs of local communities in any actions it takes.

We’re just demanding a higher level of discipline because it’s a bigger project than we’ve ever come close to,” said Caledonia resident Prescott Balch.

Typically, a data center might use fans to pass cool air over a chip. A more advanced technology that Microsoft employs for higher-powered chips involves cold plates made of copper with fluid flowing through them. Put that plate on top of a chip, and it whisks away the heat.

Legislative frameworks like the EU’s Data Act or India’s Digital Personal Data Protection Act (DPDP), see AI service providers like Microsoft under increased pressure to ensure that user-specific data processed by AI systems is stored and governed in the jurisdiction where the user is located.