Global technology giant Microsoft has announced a major investment to establish in-country data processing for Microsoft 365 Copilot in the United Arab Emirates, with the service slated to go live in early 2026. Hosted within the company’s Dubai and Abu Dhabi cloud data centres, the initiative will allow qualified UAE organisations to store and process all Copilot interaction data locally, marking a significant step towards reinforcing national data sovereignty and regulatory compliance.
Strengthening National Data Sovereignty
This move represents one of the first sovereign AI deployments by a global technology company in the Middle East. By ensuring AI-related data flows remain within UAE borders, Microsoft aims to strengthen trust among government bodies and organisations in regulated sectors. Qualified customers will be able to leverage Microsoft 365 Copilot while maintaining full compliance with national data protection standards, as all prompts, responses, and referenced content will be securely processed and stored within the country. This localisation also promises to reduce latency and boost performance for enterprise users.
Aligning with UAE’s National AI Vision
The initiative directly supports the UAE’s ambitious digital transformation goals, including the National Artificial Intelligence Strategy 2031 and the Dubai Universal Blueprint for AI. These strategies are designed to position the country as a global hub for AI development and governance. As part of its broader commitment, Microsoft’s UAE cloud ecosystem is projected to support the creation of over 152,000 new jobs and contribute to the national goal of upskilling one million learners in AI by 2027.
A Public-Private Collaboration
To ensure the deployment aligns with local frameworks, Microsoft is collaborating closely with the UAE Cybersecurity Council (CSC) and the Dubai Electronic Security Centre (DESC). This partnership guarantees that the local Copilot services adhere to the UAE’s strict AI Policy, which champions responsible AI deployment, privacy safeguards, and operational transparency. G42, a leading UAE-based AI enabler and strategic partner to Microsoft, will also play a key role in facilitating secure AI adoption across the public sector.
Localised Security and Performance
Microsoft 365 Copilot is built on a foundation of robust security measures, including data encryption, tenant isolation, and compliance with global standards like GDPR, ISO 27001, and ISO 42001. All prompts and responses are protected within the Microsoft 365 service boundary and are never used to train foundation models. With the launch of in-country processing in early 2026, these comprehensive security controls will operate locally, providing an additional layer of assurance that all Copilot data remains securely within the UAE’s national borders.
About Microsoft
Microsoft is a global technology corporation that produces computer software, consumer electronics, personal computers, and related services. Its best-known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. The company is a dominant force in the cloud computing market with its Azure platform and is a leading player in the development and deployment of artificial intelligence technologies.
Source: Middle East AI News
