Microsoft announces at the India AI Impact Summit it is on pace to invest USD $50 billion by the end of the decade to help bring AI to countries across the Global South
Artificial intelligence is diffusing at an impressive speed, but its adoption around the world remains profoundly uneven. As Microsoft’s latest AI Diffusion Report shows, AI usage in the Global North is roughly twice that of the Global South. And this divide continues to widen. This disparity impacts not only national and regional economic growth, but whether AI can deliver on its broader promise of expanding opportunity and prosperity around the world.
The India AI Impact Summit rightly has placed this challenge at the center of its agenda. For more than a century, unequal access to electricity exacerbated a growing economic gap between the Global North and South. Unless we act with urgency, a growing AI divide will perpetuate this disparity in the century ahead.
Solutions will not come easily. The needs are multifaceted, and will require substantial investments and hard work by governments, the private sector, and nonprofit organizations. But the opportunity is clear. If AI is deployed broadly and used well by a young and growing population, it offers a real prospect for catch-up economic growth for the Global South. It might even provide the biggest such opportunity of the 21st century.
As a company, we are committed to playing an ambitious and constructive role in supporting this opportunity. This week in Delhi, we’re sharing that Microsoft is on pace to invest $50 billion by the end of the decade to help bring AI to countries across the Global South. This is based on a five-part program to drive AI impact, consisting of the following:
Building the infrastructure needed for AI diffusion
Empowering people through technology and skills for schools and nonprofits
Strengthening multilingual and multicultural AI capabilities
Enabling local AI innovations that address community needs
Measuring AI diffusion to guide future AI policies and investments
One thing that is clear this week at the summit in India is that success will require many deep partnerships. These must span borders and bring people and organizations together across the public, private, and nonprofit sectors.
1. Building the infrastructure needed for AI diffusion
Infrastructure is a prerequisite for AI diffusion, requiring reliable electricity, connectivity, and compute capacity. To help address infrastructure gaps and support the growing needs of the Global South, Microsoft has steadily increased its investments in AI-enabling infrastructure across these regions. In our last fiscal year alone, Microsoft invested more than $8 billion in datacenter infrastructure serving the Global South. This includes new infrastructure in India, Mexico, and countries in Africa, South America, Southeast Asia, and the Middle East.
We’re coupling our investments in datacenters with an ambitious effort to help close the Global South’s connectivity divide. We’ve been pursuing aggressively a global goal to extend internet access to 250 million people in unserved and underserved communities in the Global South, including 100 million people in Africa.
As we announced in November, we’ve already reached 117 million people across Africa through partnerships with organizations such as Cassava Technologies, Mawingu, and others that are building last‑mile networks across rural and urban communities alike. We’re closing in on our global goal of reaching 250 million people and will share an update on that progress soon.
We’re investing in AI infrastructure with sensitivity to digital sovereignty needs. We recognize that in a fragmented world, we must offer customers attractive choices for the use of our offerings. This includes sovereign controls in the public cloud, private sovereign offerings, and close collaboration with national partners.
We pursue all this with commitments to protect cybersecurity, privacy, and resilience. In the age of AI, we ensure that our customers’ AI-based innovations and intellectual property remain in their hands and under their control, rather than being transferred to AI providers.
Critically, we balance our focus on national sovereignty with our efforts to support digital trust and stability across borders. The Global South requires enormous investments to fund infrastructure for datacenters, connectivity, and electricity. It is difficult to imagine meeting all these needs without foreign direct investment, including from international technology firms.
This need is part of what informed our announcement last week at the Munich Security Conference of the new Trusted Tech Alliance. This new partnership brings together 16 leading technology companies from 11 countries and four continents. We’ve agreed together that we will adhere to five core principles designed to ensure trust in technology. Ultimately, we believe the Global South—as well as the rest of the world—needs both to protect its digital sovereignty and benefit from new investments and the best digital innovations the world has to offer.
2. Empowering people through technology and skills for schools and nonprofits
Ultimately, datacenters, connectivity, and electricity provide only part of the digital infrastructure a nation needs. History shows that the ability to provide access to technology and technology skills are equally important for economic development.
As a company, we’re focused on this in multiple ways. One critical aspect of our work is based on programs to provide cloud, AI, and other digital technologies to schools and nonprofits across the Global South. Another is our work to advance broad access to AI skills. In our last fiscal year, Microsoft invested more than $2 billion in these programs in the Global South. This includes direct financial grants, technology donations, skilling programs, and below-market product discounts.
AI skills are foundational to ensuring that AI expands opportunity and enables people to pursue more impactful real-world applications. With the launch of Microsoft Elevate in July, we committed to helping 20 million people in and beyond the Global South earn in-demand AI skilling credentials by 2028. After training 5.6 million people across India in 2025, we advanced this work by setting a goal last December to equip 20 million people in India with essential AI skills by 2030.
As part of that commitment, today we are announcing the launch of Elevate for Educators in India to strengthen the capacity of two million teachers across more than 200,000 schools, vocational institutes, and higher education settings. Our goal is to help the country’s teaching workforce lead confidently in an AI‑driven future. The program will be delivered in partnership with India’s national education and workforce training authorities, expanding equitable AI opportunities for eight million students.
Through Microsoft Elevate, we’re also working to introduce new educator credentials and a global professional learning community that enables teachers to share best practices with peers worldwide. This effort will involve large-scale capacity building initiatives, including AI Ambassadors, Educator Academies, AI Productivity Labs, and Centers of Excellence. It will equip 25,000 institutions with inclusive AI infrastructure while integrating AI learning pathways into major government platforms.
3. Strengthening multilingual and multicultural AI capabilities
Language is another major barrier to AI diffusion across the Global South, particularly in regions where digitally underrepresented languages prevail and access to essential services depends on local-language communication. For billions of people worldwide, AI systems perform less consistently in the languages they rely on most than in English.
That’s why we’re announcing this week new steps to increase our investments across the AI lifecycle, from data and models to evaluation and deployment, to strengthen multilingual and multicultural capabilities and support more inclusive AI systems that will better serve the Global South.
First, we’re investing upstream in language data and model capability. This includes support for LINGUA Africa, which builds on what we learned through LINGUA Europe: that investing in language data and model capability in partnership with local communities can materially improve AI performance for underrepresented languages.
Through LINGUA Africa—a $5.5 million open call led by the Masakhane African Languages Hub, Microsoft’s AI for Good Lab, and the Gates Foundation, with additional support from the UK government—we are prioritizing open, responsibly sourced data across text, speech, and vision as well as use-case-driven AI model development. By enabling African languages in high-impact sectors like education, food security, health, and government services, LINGUA Africa aims to ensure AI advances translate into tangible improvements in people’s daily lives.
Second, we’re advancing multilingual and multicultural evaluation tools. We’re helping expand the MLCommons AILuminate benchmark to include major Indic and Asian languages, enabling more reliable measurement of AI safety and security beyond English.
Today, even when automated evaluation tools expand language coverage, they too often rely on machine translation or English-first model behavior, with predictable failures when local expressions shift meaning. Partnering with academic and government institutions in India, Japan, Korea, and Singapore, and with industry, Microsoft is co-leading AILuminate’s multilingual, multicultural, and multimodal expansion that builds from the ground up. With a pilot dataset of 7,000 high-quality text-and-image prompts for Hindi, Tamil, Malay, Japanese, and Korean, we’re developing tools that reflect how risks manifest in local linguistic and cultural contexts, not just how they appear after translation.
Microsoft Research is also advancing Samiksha, a community-centered method for evaluating AI behavior in real-world contexts, in collaboration with Karya and The Collective Intelligence Project in India. Samiksha encodes local language use, culturally specific communication norms, and locally relevant use cases directly into core testing artifacts by surfacing failure modes that English-first evaluations routinely miss.
Finally, we’re working to scale content provenance for linguistic diversity. For trusted AI deployment, the ecosystem benefits from tools to identify the provenance of digital content like images, audio, or video, distinguishing whether it’s AI-generated. With partners in the Coalition for Content Provenance and Authenticity (C2PA), Microsoft is helping extend content provenance standards beyond an English-ready baseline. This includes forthcoming support for multiple Indic languages across metadata, specifications, and UX guidance, alongside efforts to support mobile-first deployment. With these investments, hundreds of millions more people in India will be better equipped to identify synthetic media in their primary language.
4. Enabling local AI innovations that address community needs
As India’s guiding sutras for the AI Impact Summit recognize, AI must be applied to address pressing challenges in collaboration with people and organizations in the Global South. Microsoft’s increasing investments prioritize locally defined problems, locally grounded expertise, and real-world impact. Our goal is straightforward: to ensure that AI solutions are not only technically sound, but socially relevant and sustainable.
Today, Microsoft is announcing a new AI initiative to strengthen food security across Sub-Saharan Africa, starting in Kenya and designed to scale across the region. Across Global South communities, food security and sustainable agriculture are critical to resilience and progress. In collaboration with NASA Harvest, the government of Kenya, the East Africa Grain Council, UNDP AI Hub for Sustainable Development, and FAO, our AI for Good Lab will use AI on top of satellite data to provide critical, timely food security insights. This builds on what we’ve learned in helping to address rice farming challenges in India, where severe groundwater depletion prompted 150,000 farmers in Punjab to adopt water-saving methods. In collaboration with The Nature Conservancy, Microsoft’s AI for Good Lab developed a classification system with satellite imagery to empower policymakers to track adoption of sustainable rice farming practices, target interventions, and measure water management impacts at scale.
Through Project Gecko, Microsoft Research is also co-designing AI technologies with local communities in East Africa and South Asia to support agriculture. This work includes the Paza family of automatic speech recognition models that can operate on mobile devices across six Kenyan languages, multilingual Copilots, and a Multimodal Critical Thinking (MMCT) Agent that can reason over community-generated video, voice, and text. Microsoft also launched PazaBench—the first automatic speech recognition leaderboard, with initial coverage of 39 African languages—and developed two playbooks for multilingual and multicultural capabilities, Paza and Vibhasha. Likewise, our AI for Good Lab developed a reproducible pipeline for adapting open-weight large language models to low-resource languages, demonstrating measurable gains for languages such as Chichewa, Inuktitut, and Māori.
5. Measuring AI diffusion to guide future AI policies and investments
Finally, accelerating diffusion requires a firm understanding of where AI is being used, how it is being adopted, and where gaps persist. Building on our AI Diffusion Reports and Microsoft GitHub’s long track record of contributing to the OECD AI Policy Observatory, the WIPO Global Innovation Index, and other cross‑country analyses, we’re increasing our investments in research and data sharing to track AI diffusion.
We’re advancing new methods for sharing AI adoption metrics. For example, based on models used in public code repositories hosted on Microsoft GitHub and privacy-preserving aggregated usage signals from Azure Foundry, we’re scaling this work through contributions to the forthcoming Global AI Adoption Index developed by the World Bank.
Signals from the global developer community that builds, adapts, and deploys AI-enabled software round out adoption research. At 24 million, the Indian developer community is the second largest national community on GitHub, where developers learn about and collaborate with the world on AI. The Indian community is also the fastest growing among the top 30 largest economies, with growth at more than 26 percent each year since 2020 and a recent surge of over 36 percent in annual growth as of Q4 2025. Indian developers rank second globally in open-source contributions, second in GitHub Education users, and second in contributions to public generative AI projects, with readiness to use tools like GitHub Copilot across academic, enterprise, and public interest settings enabling AI diffusion.
Insights from this evidence base help inform investments in infrastructure, language capabilities, skilling, or beyond, supporting more targeted and effective interventions to expand AI’s benefits. They also create a common empirical baseline to track progress over time—so AI diffusion becomes something we can measure and shape, not just observe.
Sustaining impact at scale through coordinated global action
For AI to diffuse broadly and deliver meaningful impact across regions, several conditions matter. As a company, we are focused on the need for accessible AI infrastructure, systems that work reliably in real-world contexts, and technologies that can be applied toward local challenges and opportunities. Microsoft is committed to working with partners to advance this work, including sharing data to track progress.
Microsoft’s 5-point plan to partner with local communities across the United States
This year marks America’s 250th year of independence. One of the trends that has repeatedly shaped the nation’s history is again in the news. As we’re experiencing at Microsoft, AI is the latest in a long line of new technologies to require large-scale infrastructure development.
Microsoft today is launching a new initiative to build what we call Community-First AI Infrastructure—a commitment to do this work differently than some others and to do it responsibly. This commits us to the concrete steps needed to be a good neighbor in the communities where we build, own, and operate our datacenters. It reflects our sense of civic responsibility as well as a broad and long-term view of what it will take to run a successful AI infrastructure business. In short, we will set a high bar.
As we launch this initiative, we think about it in the context of both the headlines of the day and the lessons from the past. Beginning in the 1770s, the country has advanced through successive eras built on huge infrastructure development based on canals, railroads, power plants, and the electrical grid, followed by the telephone system, highways, and airports. AI infrastructure has become the next chapter in this story.
Like major buildouts of the past, AI infrastructure is expensive and complex. Investments are advancing at a rapid pace. Today, these require large-scale spending by the private sector in land, construction, electricity, liquid cooling, high-bandwidth connectivity, and operations. This revives a longstanding question: how can our nation build transformative infrastructure in a way that strengthens, rather than strains, the local communities where it takes root?
Large AI investments are accelerating just as datacenter concerns are growing in local communities. The pattern is familiar. Whether it was canals, railroads, the electrical grid, or the interstate highway system, each era produced its own conflicts over who bore the burdens of progress. One enduring lesson is that successful infrastructure buildouts will only progress when communities feel that the gains outweigh the costs. Long-term success requires a commitment to address public needs, including by the private companies making these investments.
This must start by understanding local concerns. Residential electricity rates have recently risen in dozens of states, driven in part by several years of inflation, supply chain constraints, and long-overdue grid upgrades. Communities value new jobs and property tax revenue, but not if they come with higher power bills or tighter water supplies. Without addressing these issues directly, even supportive communities will question the role of datacenters in their backyard.
As a company, we believe in the many positive advances AI will bring to America’s future. From stronger economic growth to better medical advances and more affordable products, we believe AI will make a difference in everyday lives. But we also recognize that AI, like other fundamental technological shifts, will create new challenges as well. And we believe that tech companies like Microsoft have both a unique opportunity to help contribute to these advances and a heightened responsibility to address these challenges head-on.
This Community-First AI Infrastructure Initiative provides a framework for doing exactly that. It is anchored in five commitments, each a clear promise to the communities where we build, own, and operate Microsoft datacenters. These are:
We’ll pay our way to ensure our datacenters don’t increase your electricity prices.
We’ll minimize our water use and replenish more of your water than we use.
We’ll create jobs for your residents.
We’ll add to the tax base for your local hospitals, schools, parks, and libraries.
We’ll strengthen your community by investing in local AI training and nonprofits.
We describe our plans in detail below. We recognize that these will evolve and improve, based most importantly on what we learn from ongoing engagement with local communities across the country. We’ll also follow this plan for Community-First AI Infrastructure with similar plans for other countries, shaped to reflect their local needs and traditions.
But we are choosing the beginning of 2026 in Washington, DC to launch this effort in the United States. Our goal is to move quickly, partner with local communities, and bring these commitments to life in the first half of this year.
1.Electricity: We’ll pay our way to ensure our datacenters don’t increase your electricity prices.
There’s no denying that AI consumes large amounts of electricity. While advances in technology may someday change this, today, this is the reality.
The United States will retain its AI leadership role only if AI infrastructure can tap into a rapidly growing supply of electricity. The International Energy Agency (IEA) estimates that US datacenter electricity demand will more than triple by 2035, growing from 200 terawatt-hours to 640 terawatt-hours per year. This growth is taking place alongside rapid electrification of manufacturing and other sectors of the economy.
Our nation is addressing this reality at a demanding time. Even in the absence of datacenter construction, the United States is facing major electricity challenges. Much of the country’s electricity transmission infrastructure is more than 40 years old, and it’s under strain. Supply chain constraints on transformers and high-voltage equipment are delaying upgrades that would enable existing lines to deliver more electricity. New transmission can take more than 7 to 10 years due to permitting and siting delays. This creates a mismatch with growing electricity demand.
Some have suggested that AI will be so beneficial that the public should help pay for the added electricity the country needs for it. We believe in the benefits AI will create, but we disagree with this approach. Especially when tech companies are so profitable, we believe that it’s both unfair and politically unrealistic for our industry to ask the public to shoulder added electricity costs for AI. Instead, we believe the long-term success of AI infrastructure requires that tech companies pay their own way for the electricity costs they create.
This will require that we take four steps, and we’re committed to each:
First, we’ll ask utilities and public commissions to set our rates high enough to cover the electricity costs for our datacenters. This includes the costs of adding and using the electricity infrastructure needed for the datacenters we build, own, and operate. We will work closely with utility companies that set electricity prices and state commissions that approve these prices. Our goal is straightforward: to ensure that the electricity cost of serving our datacenters is not passed on to residential customers.
In some areas, communities are already starting to benefit from this approach. In Wyoming, for example, Microsoft and Black Hills Energy have developed an innovative utility partnership that ensures our datacenter growth strengthens—rather than burdens—the local community. And as part of our datacenter investment in Wisconsin, we are supporting a new rate structure that would charge “Very Large Customers,” including datacenters, the cost of the electricity required to serve them. This protects residents by preventing those costs from being passed on. But we recognize the need to ensure that datacenter communities benefit everywhere. We believe this approach can and should be a model for other states.
Second, we’ll collaborate early, closely, and transparently with local utilities to add electricity and the supporting infrastructure to the grid when needed for our datacenters. Addressing electricity costs is critical, but it is an incomplete solution for local communities unless we expand electricity supply. This expansion typically requires a complex effort that includes the expansion of electrical generation capacity and improvements in transmission and substation systems.
We’re committed to collaborating with local utilities. We will sit down and plan together, providing early transparency around our projected power requirements and contracting in advance for the electricity we will use. When our datacenter expansion requires improvements in transmission and substation capabilities, we will continue our existing practices by paying for these improvements.
This work will build on a spirit of partnership with utilities we’ve worked to foster across the country. For example, in the wholesale energy market that covers much of the Midwest called the Midcontinent Independent System Operator (MISO), we have contracted to add 7.9 GW of new electricity generation to the grid, which is more than double our current consumption.
Third, we’ll pursue innovation to make our datacenters more efficient. We are also using AI to reduce energy use and improve the performance of our software and hardware in the design and management of our datacenters. And we are collaborating closely with utilities to leverage tools like AI to improve planning, get more electricity from existing lines and equipment, improve system resilience and durability, and speed the development of new infrastructure, including nuclear energy technologies.
By embedding these innovations into datacenters and by collaborating directly with local utilities, communities gain access to systems that are more efficient, more reliable, and better prepared to support growth without increasing costs for households.
Fourth, we’ll advocate for the state and national public policies needed to support our neighboring communities with affordable, reliable, and sustainable power. Public policy plays an essential role in supporting communities with affordable, reliable, and sustainable access to electricity. In 2022, Microsoft established priorities for electricity policy advocacy: expanding clean electricity generation, modernizing the grid, and engaging local communities. Over the past three years, we have advocated across all three areas and engaged with government leaders at the federal, state, and local levels to do so. To date, however, progress has been uneven. This needs to change.
We will advocate for policies across these areas with an urgent focus on accelerating project permitting and interconnection of electricity projects, expediting the planning and expansion of the electricity grid, and designing new electricity rates for large electricity users.
2. Water: We’ll minimize our water use and replenish more of your water than we use.
Across the country, communities are asking pointed questions about how datacenters use water. These are arising in places already facing water stress, like Phoenix and Atlanta, as well as regions with more abundant supply, like Wisconsin. These concerns are often amplified by aging municipal water systems and infrastructure gaps. Local communities want and deserve reassurance that new AI infrastructure won’t strain their water resources.
Our commitment ensures that our presence will strengthen local water systems rather than burden them. We’ll do this by reducing the amount of water we use and by investing in local water systems and water replenishment projects.
First, we’re committed to reducing the amount of water our datacenters use. The chips that power datacenters produce heat. To manage that heat, datacenters historically relied upon evaporative cooling systems that drew on large volumes of water for cooling in hot weather. As AI workloads have increased, the demand for cooling has increased. The GPU chips that power AI workloads run at very high temperatures; without proper cooling, these chips would burn out within minutes.
The good news is that the tech sector has invested in new innovations to address these cooling needs. Now is the time when we need to step up, use these new technologies, and take added steps to address water use concerns.
Across our entire owned fleet of datacenters, we are committed as a company to a 40 percent improvement in datacenter water-use intensity by 2030. We are optimizing water usage for cooling, improving our ability to balance between water-based cooling and air cooling based on environmental conditions. We have also launched a new AI datacenter design that uses a closed-loop system. By constantly recirculating a cooling liquid, we can dramatically cut our water usage. In this next-generation design, already deployed in locations such as Wisconsin and Georgia, potable water is no longer needed for cooling, reducing pressure on local freshwater systems.
For communities where water infrastructure constraints pose challenges, we will collaborate with local utilities to understand whether current systems can support the additional demand associated with datacenter growth. If sufficient capacity does not exist, we work with our engineering teams to identify solutions that avoid burdening the community.
This approach will build on what we’ve learned from the recent work at our datacenters in Quincy, Washington, an arid region where the local groundwater supply was already under pressure. To avoid drawing from the community’s potable water, we partnered with the city to construct the Quincy Water Reuse Utility, which treats and recirculates datacenter cooling water rather than relying on local groundwater. This approach protects limited drinking-water supplies while ensuring that high-quality, recycled water can be used for datacenter cooling needs. Where future system improvements are required, Microsoft funds those upgrades in full, ensuring that the community doesn’t have to shoulder the cost of supporting our operations.
We also partner with utilities from day one to map out water, wastewater, and pressure needs, and we fully fund the infrastructure required for growth, ensuring local water systems are resilient. Beyond our own footprint, we invest directly in community water infrastructure, modernizing water systems, expanding access, increasing water reliability, and helping utilities maintain stable rates and pressure. For example, near our datacenter in Leesburg, Virginia, Microsoft is funding more than $25 million of water and sewer improvements to ensure the cost of serving our facilities does not fall on local ratepayers.
Second, we will ensure that we replenish more water than we withdraw. This means restoring measurable amounts of water to the same water districts where our datacenter’s water is used, so the total water returned exceeds total water used. This standard provides greater transparency and precision in tracking and reporting, aligned with emerging industry standards.
We will pursue projects that make the most important water contribution to each local community. For example, in the greater Phoenix area and nearby Nevada communities, our leak detection partnerships with local utilities identify and repair hidden breaks in aging water systems, preventing water losses and keeping municipal water in circulation for community use. These projects both add to the total usable water supply and improve the reliability of service for residents.
Across the Midwest, we are restoring historic oxbow wetlands. These are crescent-shaped water bodies that naturally recharge groundwater, reduce flood risk, and enhance habitats for native species. These wetlands act as nature’s reservoirs, capturing and slowly returning water to local aquifers throughout both wet seasons and droughts, creating year-round value for farms, ecosystems, and nearby communities.
Overall, we approach replenishment the same way a household might think about a bank account: our operations make water withdrawals, and our replenishment projects make deposits. Some deposits, like our leak detection projects, go straight into the checking account—depositing water into the municipal supply for immediate community use. Others, like wetland restoration, go into a savings account—investing in the watershed’s long-term capacity to store and supply the region. These projects are evaluated using recognized methods that convert on-the-ground improvements into measurable gallons (or cubic meters) of water restored to local ecosystems, ensuring that commitments reflect tangible local benefits, not abstract promises.
Third, we will support this work with greater local transparency. People deserve to know how much water our datacenters use, and we are committed to making that information accessible, clear, and easy to understand. Aligned with this goal, we will begin publishing water-use data for each datacenter region in the country, as well as our progress on replenishment. This approach will ensure that communities can understand both our operational footprint and the progress we are making against our water-positive goals.
Fourth, we will advocate for public policies to help minimize water use and strengthen resilience. This means championing policies that enable sustainable growth while safeguarding community resources. We will support state and federal efforts to make reclaimed and industrial recycled water the default supply for datacenters wherever feasible. We will advocate for harmonized transparency standards that allow communities to clearly understand water use and stewardship practices. And we will work to reduce permitting delays by promoting predictable pathways for water-efficient datacenter projects.
These actions reflect our belief that technology and environmental responsibility must advance together, ensuring that AI-driven progress aligns with long-term water resilience for people, places, and ecosystems. Our policy activities are rooted in protecting local communities. By prioritizing recycled water and efficiency, we will help reduce pressure on aging municipal systems and ensure reliable water access for people and businesses.
3.We’ll create jobs for your residents.
New datacenters create jobs—typically thousands during construction and hundreds during operations. For example, in Washington state more than 1,300 skilled trades workers are building Microsoft datacenters and by the end of next year more than 650 full-time employees and contractors will work across all our operational facilities there.
One of our goals is to help ensure that workers from the local community benefit from these opportunities. To achieve this, we will invest in new partnerships to help give local residents the skills and opportunities to fill these jobs in both the construction and operational phases.
The AI infrastructure construction boom is driving large-scale physical development, creating a huge demand for skilled tradespeople nationwide. As datacenters and the energy projects that support them grow quickly, firms are vying for a limited workforce. At one level, this is good news for people who already have the qualifications these jobs require. But at another level, there is a risk the jobs will not go to local residents who want to pursue these jobs unless they can acquire the skills required.
We will take a multifaceted approach.
First, we will invest in partnerships to help train local workers to support the construction and maintenance of datacenters. This includes a new and first-of-its-kind partnership between Microsoft and North America’s Building Trades Unions (NABTU) to strengthen apprenticeship and training programs in the skilled trades where datacenters are being built. We are launching today a new agreement that establishes a cooperative framework to focus on building a pipeline of skilled workers in regions where we are building datacenters. This will also help enable NABTU to identify qualified contractor partners to bid on our infrastructure projects.
Second, we will expand our Datacenter Academy program to train individuals to fill ongoing datacenter operations roles. This program works in partnership with local community colleges and vocational schools to train students for critical roles in datacenter operations and related careers, once construction is complete.
A good example of this work is our Datacenter Academy partnerships in Boydton, Virginia, where we have a large datacenter campus. The Academy works with Southside Virginia Community College and the Southern Virginia Higher Education Center, which have helped hundreds of students and adult learners earn industry-recognized certifications in information technology and critical facilities operations.
In 2024, this work expanded with the opening of a new Critical Environment Training Lab (SoVA) in South Hill. This provides hands-on training with electrical, mechanical, and cooling systems using decommissioned datacenter equipment donated by Microsoft. Graduates of these programs have gone on to pursue careers supporting datacenter operations in Southern Virginia, including roles with Microsoft and the broader ecosystem of companies that help operate and maintain digital infrastructure. We will pursue similar partnerships in other states, and we are committed to making this an ongoing part of our work in the communities where we build new datacenters.
Third, we will use our voice to encourage policymakers to support these new job opportunities. While this work is of heightened importance in communities with datacenters, the broader need for this type of skilled labor is national in scope. According to LinkedIn data, job postings for data center occupations or requiring at least one core data center skill, such as data center operations, grew by 23 percent globally and 13.5 percent in the US year-over-year in 2025. This is likely to represent an ongoing trend. Over the next decade, trillions in private investment will offer steady employment opportunities for American workers—including electricians, pipefitters, HVAC techs, welders, and construction crews—alongside manufacturing technicians for related components, like chips, power generation, and cooling systems.
However, this rapid demand for skilled labor is set to outpace the available pipeline of workers. Today, the Associated Builders and Contractors estimates that the construction industry is short roughly 439,000 workers, mostly among skilled workers who do things like lay pipe and wire electrical panels.[1] Manufacturers report shortages as well, with the CEO of Ford Motor Company recently highlighting 5,000 open mechanic jobs that pay more than $100,000 per year. And for datacenter operations, employers face shortages in hands-on infrastructure skills such as cabling, racking, and network hardware.
This problem is exacerbated by the demographics of an aging workforce and a decades-old policy trend of deprioritizing vocational education for young Americans. A generation of skilled workers, vocationally trained in high schools and apprenticeships in the 20th century, are retiring from the trades. In the first quarter-century of the 21st century, high schools pivoted towards preparing young people for higher education and advanced degrees, often at the expense of traditional shop classes and training in skilled craftsmanship.
The increased demand for skilled trades, paired with an aging workforce, requires an enhanced public-private workforce partnership. Secondary schools in the US can be incentivized to do more to educate young people about the trades through vocational schools and pre-apprenticeship programs. Registered apprenticeship programs offered nationally provide a fulfilling career path with long-term wages and benefits.
In partnership with labor, the federal government can champion a national apprenticeship and workforce development initiative that helps young and aspiring American workers near AI infrastructure projects, especially in rural and post-industrial regions. President Trump’s AI Action Plan rightly identifies this opportunity, and we will work closely with the Department of Labor to help scale this effort. The federal government can also help by streamlining the process by which businesses can establish and maintain a registered apprenticeship program. They can also maximize the use of existing federal dollars that directly support registered apprenticeship programs. This could entail modernizing the regulations for the National Apprenticeship Act or updating the statutory language itself.
4.We will add to the tax base for your local hospitals, schools, parks, and libraries.
One of the most tangible benefits from datacenter development is invisible to an individual driving nearby. It’s the property taxes paid by datacenters to the local municipality, which are substantial. But this too requires that the private sector take a responsible approach, as described below.
We won’t ask local municipalities to reduce their local property tax rates when we buy land or propose a datacenter presence. Instead, we’ll pay our full and fair share of local property taxes, adding revenue to local towns and cities. This is obviously critical to supporting the growth a local community often experiences when datacenters are built or expanded. And most importantly, at a time when many communities are facing revenue shortages that threaten vital public assets like hospitals, schools, parks, and libraries, we know from experience that this can make a big difference.
The benefits of this approach are nowhere more apparent than in Quincy, Washington, a small agricultural community about 150 miles east of Seattle where Microsoft built its first datacenter in 2008. Since then, we have built more than twenty datacenters in the area, providing ongoing employment to thousands of construction workers for almost two decades. Hundreds of technicians enjoy permanent jobs in those datacenters, earning salaries well above the median income for Quincy. And we estimate that for every direct construction job created, another one is created in related sectors, including security services, maintenance and repair, retail, restaurants, and more. Altogether, our datacenters drive more than $200 million in regional economic activity each year.
As a result, the share of Quincy residents living below the poverty line has been cut in half, dropping from 29.4 percent in 2013 to 13.1 percent in 2023. And county property tax revenues have more than tripled over the past two decades, from roughly $60 million to more than $180 million. This has enabled the city to invest in public services and amenities. Last year, as rural hospitals around the country cut back on critical care offerings and shuttered their doors, Quincy opened a new 54,000-square-foot medical center. The city has also made substantial renovations to its high school, adding state-of-the-art athletic facilities, an auditorium, and a career and technical training department.
We want to make sure that the other communities where our datacenters are located benefit from our presence in the same way. In all the regions where we build, own, and operate datacenters, we’re devoted to taking a civically responsible approach. This means recognizing the importance of civic services, including public safety, local healthcare, schools, libraries, and parks. As we become an important local employer, local communities can count on us to be a constructive contributor to local business and civic efforts.
5. We’ll strengthen your community by investing in local AI training and nonprofits.
We believe the datacenter communities that power AI should be among the first to benefit from it. As these communities help drive innovation and economic growth for the nation, it’s essential that they share in the economic, educational, and community benefits AI is creating. Especially as jobs evolve and require more AI skills, this requires local investments in AI education and training. To support this goal, we will provide free, age-appropriate, best-in-class AI training and education in these communities in partnership with trusted, local community-based organizations.
For years, we have been helping people gain essential digital skills in communities in and around our datacenters, such as Quincy in Eastern Washington, Boydton in Southern Virginia, and Mt. Pleasant in Southeast Wisconsin. One thing we’ve learned is that these communities have vibrant anchor institutions—schools, libraries, and local chambers of commerce—that form the backbone of local learning, workforce development, and economic growth. That’s why our approach as we go forward will be to invest in communities with our datacenters to partner with and provide support to these anchor institutions so that every community member can leverage the power of AI in how they live, work, and learn.
First, we will partner with local K-12 schools, community colleges, and universities to provide age-appropriate, responsible AI literacy training and learning experiences for students and teachers in our datacenter communities. This will build on some of our most recent experiences. For example, in Quincy, Washington, we partnered with Quincy High School and the local FFA chapter to teach students the critical AI and data skills needed for careers in precision agriculture. And in our datacenter region in Mt. Pleasant, Wisconsin, we recently launched an AI bootcamp for students and faculty with Gateway Technical College to cultivate a new generation of developers and creators of AI tools and technology across Wisconsin technical colleges.
Our commitment is to build on this work to help students and teachers responsibly and effectively engage with AI, create with AI, manage AI, and design with AI by bringing free, locally relevant, responsible AI training that is aligned with AI literacy standards to students in every K-12 school, community college, and university in our datacenter markets.
Second, we will support adults in our datacenter communities with AI tools and skills by creating neighborhood AI learning hubs in partnership with local libraries in our key datacenter markets. This approach will build upon our previous digital skilling partnerships with local libraries. For example, during COVID, we partnered with libraries in rural communities across the country, and more recently, we helped train libraries in our Quincy and Mt. Pleasant datacenter markets on AI so that they could help their patrons learn AI skills. Building on this work, we will invest in AI literacy skills development for librarians and provide access to free AI literacy training and certifications to local library patrons, including by equipping public terminals at local libraries in our datacenter regions with AI tools and services.
Third, we will support AI skills training for small businesses. We recognize that AI training will be critical for small businesses as they navigate the transition to the AI economy. These businesses are the backbone of local economies, and their success directly impacts job creation, workforce stability, and community vitality. Through a new workforce transformation initiative, we will deliver AI training, tools, and insights to local chambers of commerce that support these small businesses. We will also provide flexible grants for AI training and upskilling to local chambers of commerce and a variety of workforce organizations to help local businesses upskill employees, adopt AI responsibly, and prepare their workforce for ongoing transformation—ensuring that economic opportunity stays rooted in the communities where we build and operate datacenters.
Finally, we will invest in your local nonprofit community. A defining aspect of Microsoft’s own history and culture has long been a commitment to support the many nonprofit organizations that are vital to every community the company calls home. As we expand our datacenters in new communities, we’re committed to bringing this role to these new regions.
This starts with support for our employees in the local community. We provide two key benefits to all our full-time employees. First, we will match every hour they spend volunteering for a nonprofit with a donation to that group of $25. Second, we’ll match each dollar they donate to a nonprofit with an equal donation by Microsoft. These give all our employees, including in our datacenters, a total potential match of $15,000 each year.
This approach to community engagement is an important part of Microsoft’s culture, and it has become the largest nonprofit charitable matching program in the history of business. In 2024 in the United States, it raised $229.1 million in donations for 29,000 nonprofits, plus 964,000 volunteer hours contributed by our employees. It’s a part of Microsoft we’re excited to bring to the communities that have our datacenters.
We recognize that our support for the local community also needs to go beyond this type of program. Our broader contribution must start with listening. You know best what your town needs, what nonprofits are making a difference, and which organizations are best positioned to do more. We will provide locally based Microsoft liaisons in major US datacenter communities to work side by side with local leaders and nonprofits. Our local staff will provide a community connection to our various Microsoft teams and resources. Working together, we will shape our direction and connection to help further our support for local nonprofits.
Conclusion
Many lessons emerge from the nation’s 250-year history relating to technology and infrastructure. The first is that large-scale infrastructure expansion is vital to economic growth and everyday improvements in people’s lives. Our lives today rely on electrical appliances, automobiles, phones, airplanes, and much more that would be impossible without modern infrastructure.
But a second lesson illustrates an important tension. Major infrastructure expansion is always difficult. It’s expensive. It inevitably raises questions, concerns, and even controversies. This has been true for more than 200 years, and we should assume it will be true well into the future. This always requires that important decisions be made by government leaders from village presidents and town councils to the American President and Congress.
Third, the most important decisions are often made at the local level. This reflects the outsized impact—both positive and negative—of infrastructure expansion at the local level. It also reflects the American political tradition and our zoning and permitting laws, which rightly put decision-making authority closest to those elected to serve local communities.
There’s a final lesson that speaks most directly to us. Private companies can help by stepping up and acting in a responsible way. We cannot surmount inevitable community challenges by ourselves. But we can make everything easier by embracing a long-term vision. By recognizing our responsibility. By playing a constructive role. And by supporting the entire community.
As we look to the future, we are committing to taking this final lesson to heart. And making it a fundamental part of our efforts every day.
Since opening our first Canadian office in Toronto in 1985, Microsoft has played an important role in every chapter of Canada’s digital story, long before cloud and AI were household words. That history matters. Over four decades, our company and our thousands of employees have grown alongside Canada. We’ve developed a deep appreciation for this nation’s culture, values, needs, and important role in the world.
Today we are announcing the most important commitment in Microsoft Canada’s history. We’re adding to our investments—with a total of $19 billion CAD between 2023 and 2027, including more than $7.5 billion CAD in the next two years. We’re building new digital and AI infrastructure needed for the nation’s growth and prosperity, with new capacity beginning to come online in the second half of 2026. Equally important, we’re launching a new five-point plan to promote and protect Canada’s digital sovereignty. And we’re combining this with ongoing and new work to invest in Canada’s people, ensuring they have access to the skills needed to succeed in an AI era.
This builds upon Microsoft’s longstanding and deep relationship with the Canadian people. With more than 5,300 employees across 11 cities nationwide, including Toronto, Vancouver, Montreal, Calgary, Edmonton, Ottawa, and Quebec City, we have employees in every region to bring talent closer to the communities we serve.
Beyond our own team, based on third party estimates, we’re fueling the broader tech ecosystem with more than 17,000 companies that are Microsoft partners in Canada generating between $33B CAD and $41B CAD in annual revenue. Based on this partnership model, Microsoft helps support 426,000 jobs across Canada, including close to 300,000 people who build solutions on Microsoft platforms or provide goods and services for these efforts. As we expand our AI and cloud footprint, these partnerships are helping Canadian organizations to modernize and compete globally.
Our commitment also extends beyond business. In 2024 alone, we donated $219M CAD in grants, employee giving, and technology services to Canadian non-profits and charities.
At its core, our commitment to Canada centres on three things: technology, trust, and talent.
Technology: Building the Backbone of Canada’s Digital Future
Canada’s AI transformation is accelerating. According to Microsoft’s AI Diffusion Leaderboard, Canada ranks 14th globally in AI adoption, with usage now topping a third of the population. Developer contributions are growing too with Canada ranking 14th worldwide in GitHub AI contributors.
This momentum is clear. Canada is a leader not just in AI research, but in putting AI to good use. But sustaining this momentum requires more than enthusiasm. It demands advanced AI infrastructure, sovereign safeguards, world-class cybersecurity, and a skilled workforce to keep pace with innovation. That’s why Microsoft is investing to create a secure, sustainable, and scalable backbone for AI adoption, empowering Canada to lead confidently in the AI era.
Our investment expands our Azure Canada Central and Canada East datacentre regions, delivering sustainable, secure, and scalable cloud and AI capabilities. These datacentres will power everything from modernized public services to advanced AI innovation—responsibly and within Canadian borders.
Every facility and datacentre we build in Canada reflects Microsoft’s global commitment to sustainability. We’re designing our facilities to be energy-efficient, powered increasingly by renewable energy, and optimized for water conservation through advanced cooling technologies. These steps align with our pledge to be carbon negative, water positive, and zero waste by 2030, ensuring that as we expand our AI and cloud footprint, we do so responsibly—minimizing environmental impact while supporting Canada’s clean energy goals.
Since early 2023, these investments have already launched major infrastructure projects, created thousands of jobs, and partnered with Canadian innovators to drive sustainability and economic growth. These datacentres also translate into thousands of construction and permanent engineering and technology jobs, partnerships with Canadian digital innovators, and a surge in local economic opportunity.
Our infrastructure expansion has helped transform and develop new industries—from retail and finance to cleantech and quantum computing. Firms like Canadian Tire, Manulife, BMO, and Gay Lea Foods are embracing AI to transform their businesses, and their stories are a testament to Canada’s leadership in digital adoption.
To help achieve our 2030 sustainability goals, Microsoft is also investing in Canadian cleantech innovation. Canada is recognized as a global leader in cleantech and carbon removal technologies, and we are proud to collaborate with outstanding Canadian companies like Eavor, Cyclic Materials, Arca, Deep Sky, and Carbon Engineering (via 1PointFive).
Trust: A Five-Point Plan to Protect Canada’s Digital Sovereignty
As important as our investment in AI infrastructure is the new company-wide initiative we are launching to protect Canada’s digital sovereignty. This builds on technology and expertise across Microsoft and is based on a five-part plan to defend Canada’s cybersecurity, keep Canadian data on Canadian soil, strengthen privacy protection, support leading local AI developers, and ensure the continuity of cloud and AI services.
Defending Canada’s cybersecurity
As we enter the second quarter of the 21st century, the protection of digital sovereignty starts with the protection of cybersecurity. Reflecting Microsoft’s long-term presence in Canada, we appreciate how much has changed since the century began. During the first quarter of the century, Canada’s population grew by more than 28 percent and its GDP in real terms grew by more than 55 percent. Changing geopolitics and navigation in the Arctic Ocean have put Canada in a more important global position than ever.
Canada’s growth and importance have made the country a bigger cybersecurity target.
Microsoft has long prioritized the protection of Canadian cybersecurity. With unmatched threat intelligence capabilities based on 100 trillion signals from around the world every day, we’ve seen increasing international targeting of Canadian digital assets, especially from China, Russia, North Korea, and countries across south Asia and the Middle East. This has included influence operations in advance of elections and digital espionage focused on government agencies.
Even more significant, Canada’s diverse and robust economy has become a target of sophisticated international ransomware attacks. Organized criminal groups—some with nation state sponsorship—are targeting every sector of the economy and the public, and they are starting to rely on even more sophisticated technology and techniques, including AI. Our assessment is that in 2025 more than half of cyberattacks against Canada with known motives have been based on financial objectives, and 80 percent of them have involved efforts to exfiltrate data. Almost 20 percent have targeted the healthcare and education sectors, which creates more widespread threats to the public.
To strengthen our protection of Canada’s cybersecurity, we are launching today in Ottawa a dedicated Threat Intelligence Hub. This Hub will house Microsoft subject matter experts in threat intelligence, threat protection research, and applied AI security research. They will have access to Microsoft threat intelligence data and assets from around the world, so they can work closely with the Government of Canada and law enforcement partners to track and interdict nation state actors and organized crime.
In recent months, our team in Canada has been working to thwart China-based threat actors and has been sharing intelligence related to North Korean IT workers using stolen or fake identities to secure jobs with technology companies in Canada. We are dedicated to making this cybersecurity protection even stronger going forward.
Keeping Canadian Data on Canadian Soil
We also recognize the importance of ensuring that our Canadian customers can keep their local data on Canadian soil. This is why we embarked a decade ago, in close consultation with national leaders, to build and open our first two Canadian datacentres to provide local data residency in Toronto and Quebec City. We have steadily expanded our local services each year since. In 2026, we will take three new steps to keep Canadian data on Canadian soil.
First, we will strengthen sovereign controls and expand our data residency commitments by offering in-country data processing for Copilot interactions.
Second, we will expand our Azure Local offering in Canada to enable the extension of Azure capabilities to customer-owned environments such as private cloud and on-premises infrastructure.
And third, we will launch Sovereign AI Landing Zone (SAIL) in Canada. This is an open-source AI Landing Zone whose code will be hosted publicly on GitHub, and which will provide a secure foundation for deploying AI solutions within Canada’s borders, so organizations can build, scale, and innovate while maintaining the highest standards of privacy and compliance.
Protecting Canadian privacy
We recognize that privacy is a cornerstone of digital trust. We have long protected the digital privacy of people across Canada. As we look to 2026, we will build on this strong foundation with new technical capabilities and legal measures.
Next year, Microsoft will bring the latest confidential computing capabilities to our Canadian datacentre regions. Confidential computing in Azure enables organizations to keep data encrypted and isolated, even while in use, helping meet stringent digital sovereignty requirements. Azure Key Vault will also be available to Canadian customers, supporting external key management and allowing encryption keys to remain under customer control, whether stored on-premises or with a trusted third-party Hardware Security Module (HSM).
We will couple these technical measures with expanded contractual protection. We are codifying our promise to protect our Canadian customers’ data with a contractual commitment, in which we agree to challenge any government demand for Canadian government or commercial customer data where we have a legal basis for doing so.
Supporting Canada’s AI developers
Canada’s growing AI and digital ecosystem also requires protection and support for the nation’s leading AI developers. We have expanded this work in 2025 and will continue to prioritize these efforts in the year ahead.
Our work with Cohere exemplifies this commitment: we are welcoming Cohere into the Microsoft Foundry’s first-party model lineup, making their advanced language models—Command A, Embed 4, and Rerank—accessible on Azure. This will amplify Canadian innovation on a global stage. This partnership is built on more than technology; it is grounded in trust and shared values, with initiatives to help Cohere scale across Canada and worldwide.
We will explore new ways to integrate Cohere’s sovereign, made-in-Canada AI models into Microsoft services, helping to ensure Canadian enterprises and the public sector benefit from secure, locally developed solutions that embody responsibility and integrity. Together with Canada’s leading innovators, we are building relationships that deliver opportunity and impact while reinforcing the trusted foundation of Canadian digital sovereignty.
Defending the continuity of Canadian cloud services
Finally, in the face of geopolitical uncertainty, continuity is essential. Microsoft pledges to rigorously defend the uninterrupted operation of cloud services for Canadian government customers. If ever confronted with an order to suspend or halt operations in Canada, we will pursue every available legal and diplomatic avenue—including litigation—to protect access to critical infrastructure. Our track record demonstrates our resolve to stand up for customer rights. We remain ready to reinforce this commitment through robust contractual agreements, confident in our ability to ensure the ongoing operation of Canadian datacentres. Ultimately, these efforts aim to deepen trust between people, institutions, and nations, grounded in mutual respect and a shared commitment to advancing Canada’s digital future.
Microsoft’s digital infrastructure in Canada is not built on wheels. It is permanent infrastructure, and fully subject to Canadian laws and regulations. We recognize and respect that our operations in Canada are governed by Canadian law, just as we adhere to local laws in every country where we operate.
Talent: Investing in the Future for Every Canadian
At its core, every datacentre we build and every AI capability we deploy is an investment in Canadians and their future. Because technology alone doesn’t drive transformation, people do. That’s why it’s imperative to ensure that every Canadian can develop the skills needed to succeed in an AI era.
The need is clear. By 2030, nearly 60 percent of workers worldwide will require new digital skills, yet today only 24 percent of Canadians have received AI training, compared to a global average of 39 percent. Closing this gap is critical for Canada’s competitiveness.
Our new Microsoft Elevate business unit is designed to put people first, making AI opportunities accessible across the country. Since July 2024, Microsoft Canada has engaged 5.7 million learners through free skilling programs, with more than 546,000 individuals completing an AI training course. And we’re not stopping there. By 2026, Microsoft Elevate will help 250,000 Canadians earn in-demand AI credentials, ensuring the workforce is ready for the next decade of innovation.
Our partnerships amplify this impact. The Nonprofit AI Impact Hub, developed with the Canadian Centre for Nonprofit Digital Resilience (CCNDR) and Imagine Canada, strengthens the digital resilience of Canada’s 170,000 charities and nonprofits, which collectively employ 2.7 million people. Through role-based AI training and micro-credentials, we’re equipping this sector with tools to serve communities better.
We’re also investing in the next generation. Today, we are proud to announce a new partnership with Actua, a national leader that brings STEM education to youth throughout Canada, including those in remote, rural, and Indigenous communities. Microsoft Canada and Actua are committed to working with Indigenous communities across Canada to support AI skills development, so that the benefits of AI are felt widely. This partnership will support Actua’s AI Ready and InSTEM (Indigenous Youth in STEM) programs, to equip 20,000 young Canadians with essential AI skills. The InSTEM program will add AI learning for Indigenous youth, blending technology with cultural heritage and knowledge. For instance, students learn how AI tools can help preserve Indigenous languages and support cultural identity.
Canada Can Count on Us
Few American companies have benefitted more than Microsoft from such longstanding ties to Canada. Living so close to the border, we have long appreciated the many attributes that make Canada so special. We share more than geography. We share priorities like security, sustainability, and inclusive growth.
Today, we’re taking this partnership to the next level. We believe Canada has what it takes to help lead the world in responsible AI innovation and adoption, and we’re committed to being a partner every step of the way.
As Abu Dhabi and Dubai kick off a significant week hosting annual energy and technology conferences, we want to share details of our ongoing and planned investments in the United Arab Emirates. Roughly two and a half years ago, we embarked on a new AI initiative with the encouragement and support of both the United States and UAE governments. Much of this progress has involved a new partnership with G42, the UAE’s sovereign AI company, with whom we’re making critical progress.
All told, Microsoft will invest $15.2 billion USD in the UAE between the start of this initiative in 2023 and the end of this decade, in 2029. This is not money raised in the UAE. It’s money we’re spending in the UAE. And as we do everywhere in the world, we’re focused not just on growing our business but also on contributing to the local economy. This involves bringing together three critical factors – technology, talent, and trust.
On some days, it feels like the tech sector is gripped in a rhetorical race to announce ever larger, sky-high numbers. We believe in moving fast while staying grounded and being transparent about our investment details. And we want to share our strong conviction that our investments benefit the shareholders of our company, the people of the UAE, and the relationship between our two nations.
Our investment numbers
Our $15.2 billion USD investment includes the following:
Beginning in 2023 and through the end of this calendar year, Microsoft will have invested and spent just over $7.3 billion in the UAE. This includes our $1.5 billion equity investment in G42, more than $4.6 billion in capital expenses in advanced AI and cloud datacenters in the country, and more than $1.2 billion in local operating expenses and the cost of goods sold.
From the start of 2026 to the end of 2029, we will spend more than $7.9 billion in the UAE. This includes more than $5.5 billion in capital expenses for ongoing and planned expansion of our AI and cloud infrastructure, including new steps we will share publicly in Abu Dhabi this week. It also includes almost $2.4 billion in planned local operating expenses and the cost of goods sold.
An investment in world-leading technology
Some of our most important work involves exporting world-leading technology from the United States to the UAE. This includes the GPUs essential to power AI in our datacenters across the country that support the UAE’s people and institutions.
Microsoft was one of the few companies during the previous administration to secure export licenses from the Commerce Department to ship GPUs to the UAE. In no small measure, this is because of the substantial work we did to meet the strong cybersecurity, national security, and other technology conditions required by these licenses. These licenses enabled us to accumulate in the country the equivalent of 21,500 Nvidia A100 GPUs, based on a combination of A100, H100, and H200 chips.
Microsoft was also the first company this year under the Trump administration to secure export licenses from the Commerce Department to ship GPUs to the UAE. Approved in September, these were based on updated and stringent technology safeguards. These licenses enable us to ship the equivalent of 60,400 additional A100 chips, in this instance involving Nvidia’s even more advanced GB300 GPUs.
While the chips are powerful and the numbers are large, more important is their positive impact across the UAE. We’re using these GPUs to provide access to advanced AI models from OpenAI, Anthropic, open-source providers, and Microsoft itself. We’re supporting AI-enabled applications, including our Copilot applications, from a wide variety of local and international providers. And we’re partnering with G42 to support public and private sector organizations across the UAE economy, as well as consumers across the country.
The UAE’s ranking in the Microsoft AI Diffusion Reportpublished last week shows the country leading the world in per capita AI usage. With 59.4 percent of the population using generative AI, the UAE is ahead of Singapore, which is in second place at 58.6 percent. Beyond these two, no other country tops the 50 percent mark. Microsoft’s infrastructure challenge in the UAE is not a risk of getting ahead of demand but keeping pace with it.
Investing in talent
Microsoft’s investment in the UAE is not just about technology, it’s also about people. By cultivating AI talent and skilling individuals to develop, deploy, and use AI in a way that reflects the region’s unique needs, Microsoft is helping to ensure that the UAE remains on the leading edge of AI diffusion.
Today, Microsoft’s presence in the UAE reflects this commitment. Our growing team includes almost 1,000 full-time employees and related staff representing 40 nationalities. Nearly 100 of our employees are engineers, supported by an Emirati partner ecosystem that has grown almost threefold in just two years, now with 1,400 firms employing nearly 45,000 professionals across the country.
This year, we established the Global Engineering Development Center in Abu Dhabi to attract world-class tech talent to the UAE. Our engineers not only develop new products and services for Microsoft, but support institutions and businesses across the region so they can use AI and cloud technologies to transform their own operations. As we look to the future, we aspire to grow our engineering teams further and add a new focus on domain-specific AI models and applications that will propel advances in key scientific and technological fields.
We also opened a new center for the Microsoft AI for Good Lab in Abu Dhabi, staffed by PhD level research talent specializing in large-scale AI models, vision-language models, and post training techniques. Backed by Azure compute grants allocated to partner organizations, this team collaborates with nonprofits, start-ups, researchers, academic institutions, and local businesses to address humanitarian challenges across the Middle East and Africa using AI. Already, the Lab has partnered with researchers to train large language models for low-resource languages, including those spoken in Malawi, Tanzania, Kenya, Uganda, and the Democratic Republic of the Congo – helping ensure that AI serves communities that risk being left behind in the AI age.
As the Microsoft AI Diffusion Report underscores, people need digital proficiency to fully participate in an AI-driven economy. Without the right skills, AI risks deepening inequality rather than broadening opportunity. That’s why skilling is a core pillar of our investment in the UAE.
Last November, we committed to skill one million people in the UAE by the end of 2027–and we’re well on our way to meet – and exceed–our goal. Last month at GITEX, Microsoft partnered with UAE government entities to launch an initiative to upskill 120,000 government employees across the federal government, Abu Dhabi, Dubai, and Sharjah. We will also skill 175,000 students and 39,000 teachers through collaborations with GEMS, Abu Dhabi Department of Education (ADEK), and the Knowledge and Human Development Authority (KHDA). We will announce new steps in this area on Thursday in Dubai.
Talent is the engine of AI leadership. Attracting, nurturing, and building AI talent and know-how is essential to the UAE turning its vision of becoming a global leader into a reality.
Strengthening trust
Ultimately, the use of AI depends on trust. People and institutions need to trust that AI will be developed and deployed with responsible safeguards. They need to have confidence that the cybersecurity of AI chips, models, and services will be protected. And they rightly expect AI to serve the public broadly, with cause for optimism that AI will reach and support the Global South.
Given the role of export controls and other trade issues, the flow of advanced GPUs and AI models also requires trust between nations. This in turn requires clear rules and agreements, coupled with effective compliance systems. And as always, trust between nations depends on strong relationships between its people, grounded in mutual respect and appreciation for each other’s cultures.
We’re focused on supporting all these needs.
One important part of this is the Responsible AI Future Foundation, or RAIFF. G42, Microsoft, and Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) founded this new foundation in Abu Dhabi in Februaryto promote responsible AI standards and best practices in the Middle East and across the Global South. This foundation is advancing research on the technical and ethical elements of responsible AI and is developing frameworks to ensure ethical development and deployment of AI systems, accounting for cultural diversity.
A second element comes to life through the first annual Abu Dhabi Global AI Summit, which began Sunday. Hosted by G42, Microsoft, the Responsible AI Future Foundation, and Eurasia Group’s GZERO Media, this Summit brings government ministers, private sector executives, and AI leaders together to discuss what’s needed to drive AI diffusion across the Global South. We meet at a time when there is a growing risk that uneven AI diffusion may widen the economic and societal gaps that divide the world. It’s imperative that governments, businesses, and non-governmental organizations collaborate and take new steps to promote broader access to AI.
Both these elements build on a third and deeper initiative that Microsoft and G42 have advanced during the past two years. In conjunction with our $1.5 billion investment, Microsoft and G42 created last April a first–of–its–kind binding frameworkbetween two private companies. Developed in close consultation with the U.S. and UAE governments, this Intergovernmental Assurance Agreement (IGAA) ensures that both our companies meet or exceed U.S. standards in critical areas such as cybersecurity and physical security, export controls and technology transfer, data protection and responsible AI, and Know Your Customer (KYC) best practices.
As we drafted the IGAA, we consulted not only leaders from government ministries in our two countries, but with members and staff of both political parties in both houses of Congress in Washington, D.C. We listened to feedback and adapted the IGAA to address their suggestions. And we’ve built a strong compliance infrastructure to implement these requirements based on industry best practices and auditing standards.
All these steps help bolster mutual confidence and trust between our two governments. But trust between nations also grows through relationships among people. That’s why we’re advancing a fourth and new element this week, traveling to Abu Dhabi with a Seattle delegation of public and private leaders. The group includes a former Governor and local leaders in economic development, higher education, medical research, the non-profit community, and sports. The goal is to deepen understanding, exchange ideas, and explore solutions that can advance both regions.
Looking to the future
Microsoft is committed to the future of the UAE and a strong relationship between our two nations. We believe in the UAE’s long-term economic vision and the role the UAE and the U.S. continue to play together to support peace, stability, and growth across the Middle East.
As we do everywhere we do business, Microsoft is committed to a broad perspective and long-term approach. Our work in the UAE has underscored the importance of connecting technology investments to initiatives to attract and develop the talent needed for a vibrant and self-sustaining tech ecosystem. And work to advance trust, which may seem peripheral to some, is in fact of central importance. From stronger business practices to broader international ties, trust is a critical catalyst for technology success at a local and global level.
Technology is our business and we’re as excited as anyone by its potential. But we know that ultimately there is only one test that matters. It’s how our technology empowers others to achieve more. Like every public company, our shareholders rightly expect us to deliver value to customers in ways that enable us to continue to grow. But we also judge ourselves by whether we are generating local opportunities and growth that go well beyond ourselves. Across the UAE, we’re committed to passing this test.
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