Data centers in UAE continue to strengthen the country's position as a regional and global data center hub. Driven by large-scale upcoming data center projects such as Microsoft & G42’s data center expansion, du and Microsoft’s hyperscale facility, Stargate UAE, the country is boosting its digital infrastructure. 

The UAE has attracted investments from major industry players such as Amazon Web Services (AWS), Google, and Microsoft, while domestic operators such as Khazna Data Centers, Moro Hub, and Equinix play a growing role in expanding local capacity. In this blog, we have listed the upcoming data center projects in the UAE for 2026. 

Top Data Center Projects in UAE 2026

Here are some of the top data center projects in the UAE:

Stargate UAE

Stargate UAE is a 1 GW compute cluster that will be built by G42 and operated by OpenAI and Oracle. The data center was announced by an international collaboration of OpenAI, Oracle, NVIDIA, SoftBank Group, and Cisco in May 2025. Softbank and NVIDIA, which will supply the latest NVIDIA Grace Blackwell GB300 systems.

The facility is a part of the 5 GW UAE-US AI campus in Abu Dhabi. It will provide nation-scale compute and low-latency inferencing. The campus will span 10 square miles and will run on nuclear, solar, and natural gas power. The first 200 MW of the AI cluster is expected to go live in 2026. 

Microsoft & G42 – UAE Data Centre Expansion

Microsoft, in November 2025, announced a major data center expansion with an investment plan of USD 5.2 billion, which will be delivered through Khazna Data Centers, which is a G42 subsidiary. 

Under this expansion, 200 MW of additional capacity will be added, supporting the cloud & AI infrastructure, and is expected to come online before the end of 2026. It is designed to support Microsoft AZURE Cloud, AI workloads, and cloud services.

This project is part of Microsoft's USD 7.9 billion investment in the UAE between 2026 and 2029. As a part of this total investment, it includes a USD 1.5 billion equity investment in the joint data center expansion projects with G42.

Khazna 100 MW Ajman Data Center

Khazna Data Centers (Khazna) is building a 100 MW AI- AI-optimized data center in the UAE. Situated in Ajman, the data center will span 100k sqm and will feature 20 data halls, each with 5 MW capacity.

The project was first announced in 2024, and the project has already broken ground and is on track to be completed. It is a Tier 3 data center and will be he first AI Data Center in the region.

Electricity for the Ajman Data Center will be supplied by Etihad Water and Electricity Company (EtihadWE). While the Ajman data center was originally expected to be operational by Q3 2025, no subsequent announcements have been made confirming its commissioning as of December 2025.

du + Microsoft Hyperscale Data Centre (UAE)

du, which is a Dubai telecom operator, and Microsoft announced a hyperscale data center facility. Microsoft, as the main tenant, and du will develop and operate this data center facility. In April 2025, Du signed a USD 544.54 million (AED 2 billion) deal with Microsoft to develop a hyperscale data center in the UAE.

Recently, in August 2025, Turner & Townsend was appointed to deliver the project and cost management services for the project. Located on a 20,000 sqm greenfield site, it is designed to enhance and expand hyperscale cloud infrastructure in that region.    

Alibaba Cloud Second Data Center in Dubai

Alibaba Cloud, a subsidiary of Alibaba Group, announced its second data center in Dubai in October 2025. The new data center aims to support cloud computing and artificial intelligence (AI) adoption in the region by providing scalable and resilient infrastructure. Its first data center was opened in 2016.

This project is launched as part of Alibaba's previous investment plan of RMB 380 billion (USD 53 billion) in cloud and AI infrastructure over the next three years (2025-29). 

Other Data Center Projects in the UAE 2026

Equinix DX3 Data Center Development Phase II

Equinix is developing a data center complex, DX3, in Dubai Production City, part of its International Business Exchange (IBX®) footprint in the UAE. It is next to the DX1 and DX2 facilities and is owned and will be operated by Equinix Middle East FZ LLC. 

McLaren International, a subsidiary of McLaren Construction Group, has been appointed as the main contractor for the next phase of DX3, building on its work from earlier stages of the project. The first phase of the DX3 project was completed in June 2023, and phase 2 is currently under construction.

Phase 2 will add a capacity of 7.2 MW of IT power for the complex, following the 3.6 MW IT created during the first phase. Phase 2 will cover an area of  9,154 sqm and will provide a net data hall floor space, across two storeys, of 3,106 sqm. McLaren will work with Equinix to install electrical infrastructure designed to provide flexibility to distribute 1.2MWIT across both data centres, depending on their energy requirements.

Madari Space – Orbital Data Center Pilot (2026)

Abu Dhabi–based startup Madari Space is planning to pilot the world’s first orbital data center. The company is planning to launch a data processing and storage facility into Low Earth Orbit (LEO) targets or Q3 2026. Unlike traditional ground data centers, this project places computing and storage capabilities in space, close to sources of satellite‐generated data such as Earth observation systems.

Operating in space allows the facility to take advantage of the natural vacuum for cooling and unlimited solar power potential for the data centers. This project is backed by the Mohammed bin Rashid Innovation Fund and supported by national agencies such as the UAE Space Agency and the Mohammed bin Rashid Space Centre.

Conclusion 

The UAE’s data center landscape continues to change with major upcoming projects such as Microsoft & G42’s data center expansion, du and Microsoft’s hyperscale facility, Stargate UAE.

As several hyperscale and AI-focused facilities move closer to commissioning through 2026, the UAE is strengthening its position as a strategic data center hub for the MENA region, fulfilling the growing requirements of cloud service providers, edge computing deployments, and managed services. 

With continued investment from key industry players and supported by local domestic operators such as Khazna Data Centers, the UAE government continues to support Tier III-standard data center development across the country.

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