Microsoft and Core42 have jointly launched a blueprint for a sovereign AI cloud infrastructure in the United Arab Emirates.
This ambitious initiative reflects a strategic alignment of technology and governance, designed to ensure that AI innovation is pursued without compromising national control, security, or regulatory compliance. As global conversations around data governance, digital autonomy, and technological ethics grow more urgent, this partnership sets a precedent for how sovereign cloud infrastructure can simultaneously enable and protect.
The foundation of this initiative is the creation of a secure, high-performance Microsoft cloud environment tailored to meet the unique needs of the UAE’s government and regulated industries. Built on Microsoft Azure and fortified by Core42’s sovereign controls platform, known as Insight, the project is designed to process over eleven million digital interactions daily between government entities, citizens, residents, and businesses. The objective is clear: accelerate AI adoption in a controlled, secure, and locally governed cloud ecosystem that supports rapid digital transformation across the country.
At the heart of the project Microsoft and Core42 is a shared commitment to empowering the UAE’s vision of becoming the world’s first fully AI-native government by 2027. This transformation is not simply about replacing human processes with automated ones, but about reimagining public services with the speed, efficiency, and analytical capabilities that AI offers. The collaboration goes beyond infrastructure to provide governance models, compliance frameworks, and practical guidance for adopting AI securely and effectively.
The joint initiative is backed by a \$3.54 billion investment as part of Abu Dhabi’s Government Digital Strategy 2025–2027. This strategy outlines the deployment of over 200 AI-driven public services and digital tools aimed at increasing operational efficiency, enhancing citizen experiences, and promoting environmental sustainability. By centralizing AI capabilities in a sovereign cloud environment, the government aims to build trust among stakeholders while ensuring sensitive data remains within national borders and under local jurisdiction.
Unlike traditional cloud models, which often rely on infrastructure hosted abroad, a sovereign cloud ensures that data is stored, processed, and managed within the UAE. This addresses growing concerns over data residency and cross-border compliance, especially for sectors such as healthcare, finance, and public administration. Through sovereign controls and localized oversight, the platform ensures adherence to national laws and provides clear visibility into data governance practices, a key requirement in today’s era of AI regulation and scrutiny.
The unveiling of this initiative was marked by a formal agreement signed in the presence of high-ranking officials, including the Chairman of the Artificial Intelligence and Advanced Technology Council, the Chairman of the Executive Affairs Authority, and senior executives from Microsoft and Core42. Their presence underscored the political and strategic significance of the partnership, framing it as a national imperative rather than a purely technological endeavor.
For Microsoft, the collaboration represents a deepening of its commitment to supporting digital transformation in the Middle East through secure and scalable cloud solutions. The company’s global expertise in cloud infrastructure and AI services brings proven reliability and innovation to the project, while Core42 provides the necessary regional context, cultural understanding, and regulatory alignment to localize the solution for the UAE’s unique needs.
Core42, a subsidiary of the G42 conglomerate, specializes in AI infrastructure and digital services tailored for national resilience and technological independence. By integrating its sovereign capabilities into Microsoft Azure’s hyperscale environment, Core42 ensures that local governance and operational control are embedded at every layer of the cloud stack. This dual-layered approach provides customers with the innovation benefits of global cloud platforms while meeting stringent requirements for data security and regulatory compliance.
The release of a comprehensive whitepaper alongside the initiative adds further value. Titled “Balancing Innovation and Compliance in the AI Era,” the document outlines best practices, architecture models, and strategic considerations for technology leaders in regulated sectors. It serves as both a technical reference and a policy guide, helping stakeholders navigate the complex intersection of AI innovation, data privacy, and national sovereignty.
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