Abu Dhabi, Microsoft, G42 Forge Sovereign Cloud Deal
The Abu Dhabi Government has signed a multi-year agreement with Microsoft and Core42, a G42 company, to implement a sovereign cloud system designed to transform government services. The Department of Government Enablement – Abu Dhabi (DGE) announced the partnership, which aims to process more than 11 million daily digital interactions between government entities, citizens, residents and businesses.
The agreement was signed in the presence of H.H. Sheikh Tahnoon bin Zayed Al Nahyan, Deputy Ruler of Abu Dhabi and Chairman of the Artificial Intelligence and Advanced Technology Council, and Khaldoon Al Mubarak, Chairman of the Executive Affairs Authority. The partnership was entered into by Ahmed Tamim Hisham Al Kuttab, Chairman of Department of Government Enablement – Abu Dhabi, Satya Nadella, Chairman and CEO of Microsoft and Peng Xiao, Group CEO of G42.
“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,” says Ahmed Al Kuttab.
Microsoft Azure and Core42 sovereign cloud platform underpin transformation
The Abu Dhabi Government plans to invest AED13 billion (US$3.54 billion) in digital infrastructure through its Digital Strategy 2025-2027. The government aims to become the world's first fully AI-native administration by 2027, with plans to automate 100% of its processes.
The strategy calls for deployment of over 200 AI-driven solutions to improve public service delivery and operational productivity. Progress is evident in the TAMM 3.0 government services app, which has reduced offline customer visits by 90% and made more than 73% of transactions instantaneous.
Satya Nadella says: “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.”
The collaboration creates a unified, high-performance sovereign cloud computing environment. Core42, a G42 company specialising in sovereign cloud, AI infrastructure and digital services, will deliver its sovereign cloud platform powered by Microsoft Azure.
G42 provides sovereign controls through insight platform
The implementation of sovereign cloud architecture represents a central component of Abu Dhabi’s digital strategy. Sovereign clouds provide frameworks that ensure data remains under local jurisdiction while still benefiting from hyperscale cloud capabilities.
In practical terms, sovereign cloud means government data is stored within national borders, processed according to local regulations, and protected from foreign access or jurisdictional claims. This model has gained prominence as governments balance the need for technological advancement with data protection requirements.
The Core42 sovereign cloud system will maintain data sovereignty while enabling government entities to utilise cloud innovations. Core42’s sovereign controls platform, called Insight, will enhance the Azure infrastructure to meet government requirements.
Government goals include enhanced services for citizens and residents, greater transparency for businesses and investors, and creation of a resilient environment for the public sector workforce.
Peng Xiao says: “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 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
The agreement reinforces a growing emphasis on responsible AI deployment. Abu Dhabi’s digital transformation approach focuses on both technological advancement and governance frameworks to ensure AI systems operate within established parameters.
The cloud infrastructure will support integration of government services, reduction of administrative burdens, and implementation of data-driven decision making across departments.
“This collaboration between the Abu Dhabi Government, Microsoft and G42 reveals the potential of strategic digital transformation to help governments operate more efficiently and responsively. By implementing AI and sovereign cloud technologies, this reinforces the emirate’s commitment to enabling a responsible AI-powered future that fosters innovation and delivers people-centric services aligned with the highest global standards,” says Ahmed Al Kuttab.
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