DUBAI, U.A.E.: Microsoft plans to invest more than US$10 billion across four Middle East countries through 2030, expanding its cloud and artificial intelligence infrastructure while strengthening the resilience of its regional operations amid the ongoing war with Iran.

The U.S. technology giant will direct the investment to the United Arab Emirates, Saudi Arabia, Qatar and Kuwait, Vice Chair and President Brad Smith said.

The spending reflects both Microsoft's "ongoing build-out of infrastructure and also the expansion of operations in the region," Smith said.

Countries in the Middle East have been investing heavily in artificial intelligence as they seek to develop into global technology hubs and diversify their economies beyond oil and gas. Their access to relatively cheap energy and abundant land has helped attract large technology companies, including Microsoft.

The regional conflict has, however, created new challenges for digital infrastructure. Data centers have been among the targets, including facilities operated by Amazon's AWS cloud unit in Bahrain and the UAE.

Microsoft has no plans to slow its spending because of the conflict.

"We're sustaining all the investments we planned to make before this conflict started, and we're in fact adding to them ... It's an aggressive spending schedule," Smith said.

Microsoft has also provided local partners with digital resilience assessments since the early stages of the conflict, which began on February 28.

The company is now working with Middle East countries on areas such as preparedness and the protection of critical data as part of a broader digital resilience initiative.

Smith did not provide a breakdown of Microsoft's planned investment by country or by individual project, citing factors such as security. While the UAE has largely avoided attacks since May, several other Middle East countries continue to face threats.

Microsoft separately plans to invest more than $400 million in subsea and terrestrial connectivity across the Middle East by 2030.

The company is also expanding partnerships with national artificial intelligence companies in the region. Microsoft invested $1.5 billion in Abu Dhabi-based G42 in 2024 for a minority stake and secured a board seat, which is currently held by Smith.

It is also working with Saudi Arabia's Humain and Qatar's Qai "in selected areas that are priorities for them," Smith said. He added that Microsoft does not plan to make capital investments in either company.