The Emirates Integrated Telecommunications Company PJSC, known as du, has announced a significant deal with Microsoft, valued at 2 billion dirhams (approximately $544.54 million), to construct a hyperscale data center. This facility will primarily serve as a large-scale data storage and cloud computing center for businesses, and Microsoft will be the main tenant.

Du stated that the capacity of the data center will be delivered in multiple phases. The announcement was made during Dubai AI Week, highlighting the deal’s importance in supporting the UAE’s digital ecosystem. Fahad Al Hassawi, CEO of du, emphasized that this agreement “represents a pivotal leap in our strategic goal to revolutionise the digital ecosystem of the UAE.”

Currently, du operates five data centers across the United Arab Emirates, which is actively working to position itself as a global hub for artificial intelligence technology, following the United States. The exchange rate for this deal is noted as $1 equaling 3.6728 UAE dirhams.