Earlier today, tech giant Microsoft (MSFT) and G42, an artificial intelligence company based in Abu Dhabi, announced plans to expand their data center operations in the United Arab Emirates. In fact, the companies will add 200 megawatts of capacity to their existing facility. This move is part of Microsoft’s plan to invest over $15 billion in the UAE by 2029, with $7.9 billion set to be spent between 2026 and 2029.
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The project will be carried out by Khazna Data Centers, a G42 subsidiary, and is expected to begin operating before the end of 2026. However, this expansion is about more than just increasing computing power. More specifically, Microsoft Vice Chair and President Brad Smith said that it’s about helping shape the UAE’s future through innovation and opportunity. By combining Microsoft’s global experience with G42’s local knowledge, the goal is to build a strong foundation for new technologies and economic growth.
In addition, G42’s Group CEO, Peng Xiao, stated that the partnership supports the firm’s goal of building the “Intelligence Grid,” which is meant to be a secure and collaborative infrastructure project for the AI era. Nevertheless, Microsoft investors didn’t seem to be too excited about today’s news, as shares are trading lower at the time of writing.
Is MSFT Stock a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 32 Buys assigned in the last three months. Furthermore, the average MSFT price target of $634.87 per share implies 24.5% upside potential.
