Microsoft to provide local Copilot data processing in UAE
Local processing of data will begin in 2026 using Microsoft's UAE data centres
#UAE #GITEXGLOBAL2025 — Microsoft has announced a major investment to enable in-country data processing for Microsoft 365 Copilot in the United Arab Emirates, set to go live in early 2026. Hosted within Microsoft’s Dubai and Abu Dhabi cloud data centres, the initiative will allow qualified UAE organisations to store and process Copilot interactions locally. The move supports the UAE’s National Artificial Intelligence Strategy 2031 and aligns with new AI Policy standards set by the UAE Cybersecurity Council, reinforcing national data sovereignty and regulatory compliance. Microsoft 365 Copilot was fist introduced in 2023.
SO WHAT? – Microsoft’s plans to process 365 Copilot data locally marks one of the first sovereign AI deployments by a global technology company in the Middle East. By keeping AI data flows within UAE borders, Microsoft strengthens trust among government and regulated sectors while supporting the country’s ambitions to lead in responsible AI adoption. Qualified customers will be able to use Copilot with full regulatory compliance, as all interaction data will be securely stored and processed within the nation’s borders. The investment also strengthens Microsoft’s role as a trusted partner in the UAE’s digital transformation.
Here are some key points about the announcement:
Microsoft will launch in-country processing for Microsoft 365 Copilot in early 2026, hosted in its Dubai and Abu Dhabi data centres, giving qualified UAE organisations local data residency and compliance with national AI policies.
The initiative reinforces the UAE’s National Artificial Intelligence Strategy 2031 and the Dubai Universal Blueprint for AI, both designed to make the country a global centre for AI development and governance.
The initiative will support the creation of over 152,000 new jobs through Microsoft’s UAE cloud ecosystem and contribute to a national AI upskilling goal of one million learners by 2027.
UAE Cybersecurity Council (CSC) and Dubai Electronic Security Centre (DESC) are collaborating with Microsoft to ensure alignment with data protection, cybersecurity, and AI governance frameworks.
Local processing will ensure that all Copilot interaction data remains within UAE borders under normal operations, reducing latency and boosting performance for enterprise, regulated and government users.
The project complies fully with the UAE Cybersecurity Council’s AI Policy, supporting responsible AI deployment, privacy safeguards, and transparency across AI-driven workflows.
G42, the leading UAE AI enabler and strategic partner to Microsoft, will help facilitate secure AI adoption across the public sector.
ZOOM OUT - Microsoft 365 Copilot safeguards data through encryption, tenant isolation, and compliance with global standards such as GDPR, ISO 27001, and ISO 42001. All prompts, responses, and referenced content stay within the Microsoft 365 service boundary, ensuring they are never used to train foundation models. Built-in protections include harmful content filtering, copyright and data leakage detection, and prompt-injection defences. With the UAE’s new in-country processing, these controls will operate locally from early 2026, ensuring all Copilot data remains securely stored and processed within national borders.
[Written and edited with the assistance of AI]