Tech giants Microsoft Corp. and Dubai-based AI firm G42 are investing $1 billion in a new data centre in Olkaria, southwest Kenya.
This project aims to boost cloud computing services across East Africa.
What it Means
East Africa is getting a state-of-the-art data centre powered by geothermal energy. This translates to faster and more reliable access to cloud services like Microsoft Azure for businesses and individuals in the region.
Secondly, the data centre is expected to energize the overall digital landscape in East Africa, fostering innovation and growth.
Third, the project reflects a broader trend by major tech companies like Microsoft, Amazon, and Alphabet to meet the growing demand for cloud and AI services worldwide.
The $1 billion investment signifies a major step forward for East Africa’s technological infrastructure. The region’s political stability and large, tech-savvy population are attracting global tech investors.
East Africa has the potential to become a hub for cloud services and AI development in future.
Subsequently, the use of geothermal energy to power the data centre highlights a commitment to sustainability. This project sets an example for future data centre development around the world, promoting eco-friendly practices in the tech industry.
“This partnership between two companies and three countries highlights a real opportunity to bring digital technology to the Global South safely and securely,” said Brad Smith, vice chair and president of Microsoft.
“This represents the single largest and broadest digital investment in Kenya’s history and reflects our confidence in the country, the government, its people, and the future of East Africa.”
Peng Xiao, G42 CEO, added: “In partnership with Microsoft, we are excited to work with the Kenyan government to usher in a transformative era for the digital ecosystem in Kenya and the region.
“By establishing a green data centre and developing AI tailored to the local culture, G42 is committed to fostering sustainable technological growth. This initiative will empower the Kenyan government and communities with robust, secure cloud services and AI capabilities, providing the foundation for a thriving digital economy across the region.”
In April, Microsoft announced a $1.5 billion investment in G42 to expand access to digital and AI services for customers across the Middle East, Central Asia, and Africa.
G42, along with local Kenyan operator EcoCloud, announced plans in March to build a geothermal-powered data centre campus in Kenya. This project has the potential to expand from an initial capacity of 100MW to a staggering 1GW, making it a significant development in sustainable data centre infrastructure.
Construction on the first phase, codenamed “Project Eagle,” began in 2023 at the KenGen Green Energy Park in Olkaria, Kenya.
EcoCloud is spearheading this initiative with Sudlows Consulting and X2X Group acting as lead consultants. The completed first phase is expected to deliver 24MW of IT capacity spread across eight individual 3MW data halls, each housing between 300 and 500 server racks.
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