Microsoft has disclosed plans to construct a $1 billion geothermal-powered data centre in Kenya, in partnership with G42, a leading artificial intelligence firm from the United Arab Emirates.
This announcement comes just two weeks after the tech giant closed its African Development Centre (ADC) in Lagos, citing the deteriorating economic conditions in Nigeria.
The new data centre, which will be located in Olkaria, an area rich in geothermal resources, aims to enhance cloud computing capacity and services across East Africa. G42 will spearhead the initial investment and oversee the construction of the facility. The geothermal resources in Olkaria will help mitigate power outage issues.
According to Bloomberg, this initiative is part of a multiyear effort to expand digital infrastructure in the region. Microsoft, G42, and Kenyan officials, with support from the US and UAE governments, are scheduled to sign a letter of intent for this project on Friday.
Kenyan President Dr. William Ruto highlighted the significance of this partnership, stating, “This partnership is bigger than technology itself.
“It is about coming together of three countries with a shared vision of a nation empowered by technology, where every citizen has the opportunity to thrive in the global digital landscape.
“It’s about building a future where Kenya flourishes as a digital leader,” he added.
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Microsoft President Brad Smith echoed this sentiment, describing the project as the most significant advancement in digital technology availability in Kenya’s history.
Smith stated, “This is the single biggest step to advance the availability of digital technology in, I think, the country’s history.”
While Kenya secures this substantial investment, Nigeria continues to experience a decline in foreign business presence, with several companies withdrawing due to economic instability and security concerns since 2023.
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