AI News Monitor

In a significant move to reinforce the UAE’s digital sovereignty, Microsoft and Core42 — a G42 company specializing in AI and sovereign cloud infrastructure — unveiled a landmark whitepaper this week detailing how sovereign public cloud solutions are shaping the nation’s digital transformation.

Titled “Balancing Innovation and Compliance in the AI Era,” the whitepaper underscores the growing importance of sovereign cloud technologies in helping governments and industries meet the twin imperatives of technological progress and regulatory compliance.

Sovereign public clouds, which ensure that sensitive data is stored and managed within national borders, are emerging as vital infrastructure in the age of AI. These systems enable enhanced data privacy, stronger cybersecurity, and full compliance with local regulations — all without sacrificing the scale and innovation traditionally offered by public cloud services.

The document highlights a core message: the long-standing trade-off between innovation and regulation is no longer necessary. Through examples ranging from AI-powered fraud detection in finance to real-time energy analytics, the whitepaper showcases how sovereign clouds can unlock powerful new capabilities while preserving data control and regulatory alignment.

“The Core42 Sovereign Public Cloud, powered by Microsoft Azure, is a cornerstone of our commitment to digital trust,” said Sherif Tawfik, Chief Partnership Officer for Microsoft’s AI & Cloud for Sovereignty. “We are enabling UAE organizations to innovate boldly and securely.”

The partnership has already taken concrete form. In a recent milestone, the Abu Dhabi Government signed a multi-year agreement with Microsoft and Core42 to implement a sovereign cloud platform capable of handling more than 11 million daily digital interactions across government entities and the public.

Adrian Hobbs, Chief Technology Officer at Core42, noted that the sovereign platform, which incorporates Core42’s proprietary control layer “Insight,” is tailored to meet the compliance needs of regulated sectors. “We are not just offering infrastructure,” Hobbs said, “we are helping to architect a secure, innovation-ready future for the UAE.”

This strategy aligns closely with Abu Dhabi’s broader ambition to become the world’s first fully AI-native government by 2027. The UAE’s investment in digital infrastructure, the whitepaper argues, is positioning the nation as a global model for responsible AI adoption.

Global momentum is also accelerating. Sovereign cloud spending is projected to nearly double by 2027, reaching $259 billion — a signal that nations worldwide are rethinking their digital foundations.

In the UAE, at least, the future of cloud computing may well be sovereign.