Abu Dhabi Teams with Microsoft, Core42 to Build AI-Powered Government Cloud

Abu Dhabi has stepped up its ambitious plan to revolutionise public services digitally, partnering up with technology giants Microsoft and Core42, a subsidiary of G42 specialising in sovereign cloud technology, artificial intelligence, and digital services. This deal aims to establish a robust sovereign cloud infrastructure, helping streamline government interactions and delivering innovative services for citizens, residents, and businesses alike.

Marked by an official ceremony, the partnership was unveiled in the presence of high-ranking Emirati leaders including His Highness Sheikh Tahnoon bin Zayed Al Nahyan—Deputy Ruler of Abu Dhabi and Chairman of the Artificial Intelligence and Advanced Technology Council—and His Excellency Khaldoon Al Mubarak, Chairman of Abu Dhabi's Executive Affairs Authority.

This multi-year agreement was formally signed by His Excellency Ahmed Tamim Hisham Al Kuttab, Chairman of Abu Dhabi's Department of Government Enablement (DGE), alongside Microsoft boss Satya Nadella and Peng Xiao, the Group CEO of G42. The initiative promises to set up a high-performance cloud environment, designed to manage over half a million digital interactions per day across various Abu Dhabi government agencies.

Reflecting on this move, Al Kuttab noted, “Technology has the power to transform how governments interact with people, making services more efficient, intuitive, and impactful. This partnership is a critical milestone in our digital transformation. By combining Microsoft's cloud technologies, G42's AI expertise, and the Government’s strategic vision, we are helping to enable a powerful platform that will redefine government services.”

Aiming high, Abu Dhabi is setting its sights on becoming the world’s first fully AI-native government by 2027. To achieve this bold ambition, significant investments are already underway. An impressive AED 13 billion has been earmarked for enhancing digital infrastructure as part of Abu Dhabi‘s Digital Strategy for the period between 2025 and 2027. According to authorities, the end goal will be nothing short of full automation of government processes. More than 200 AI-driven solutions are planned to optimise public services, improve efficiency, and contribute positively to sustainability initiatives.

One existing example of this approach in action is TAMM 3.0, Abu Dhabi’s popular one-stop app that's already making a difference—saving customers more than 22 million in-person visits and providing instant resolutions for roughly 73% of digital transactions.

Satya Nadella, CEO of Microsoft, was particularly optimistic about the partnership’s potential: “AI will transform how governments operate and serve their citizens everywhere, and Abu Dhabi is leading the way. Through our partnership with the Department of Government Enablement – Abu Dhabi and G42, we are setting a standard for AI adoption in the public sector, as we help Abu Dhabi become the world’s first AI-native government.”

Under the agreement, Core42's Sovereign Public Cloud system, based on Microsoft's Azure and enhanced through G42's own sovereign controls platform "Insight", will support data sovereignty concerns. The initiative effectively balances innovation while safeguarding national security and confidential data across government platforms.

G42 Group CEO Peng Xiao explained the importance of this particular collaboration, adding: “This agreement marks a pivotal step in G42’s commitment to supporting Abu Dhabi’s vision of becoming the world’s first fully AI-native government. Core42’s Sovereign Public Cloud, powered by Azure and enhanced by our sovereign controls platform, Insight, enables government entities to maintain data sovereignty while harnessing hyperscale innovation. This initiative goes beyond a technological leap; it is a commitment to building a resilient, future-ready digital infrastructure for AI modernisation across Abu Dhabi government entities and sets a global benchmark for innovation.”

This specific partnership between DGE, Microsoft, and Core42 underscores Abu Dhabi's forward-thinking approach. Through combining modern tech, sovereign cloud infrastructure, and responsible AI solutions, the emirate intends to deliver measurable improvements to how government agencies respond to their constituents' needs. It's an important milestone for Abu Dhabi's digital ambitions—certainly not pie-in-the-sky, but actually achievable with these big-league partners on board.

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