In a groundbreaking move, Microsoft Corporation and G42, a leading artificial intelligence company based in the United Arab Emirates, have announced plans to construct a $1 billion geothermal-powered data center in Kenya. This ambitious project represents the first phase of a multiyear initiative designed to enhance cloud computing capacity and services across East Africa.
The decision comes on the heels of Microsoft’s controversial closure of its African Development Center in Lagos, Nigeria, a move that resulted in the loss of approximately 200 jobs. The shift to Kenya aligns with Microsoft’s strategic objectives, focusing on sustainable energy solutions and circumventing the frequent power outages that plague many parts of the continent.
G42 will spearhead the initial investment and oversee the construction of the facility in Olkaria, a region renowned for its rich geothermal resources. The first phase of the data center will have a capacity of 100 megawatts and is slated to become operational within two years.
A formal agreement is set to be signed tomorrow between Microsoft, G42, and Kenyan officials, facilitated by support from the US and UAE governments. This letter of intent underscores the significant international cooperation backing the project.
Microsoft President Brad Smith, familiar with Kenya’s digital landscape, emphasized the project’s potential to embed digital technology deeply within the country’s development framework. Smith praised the collaboration with G42, noting the potential for significant advancements in digital technology across Africa through this partnership.
G42’s Chief Executive Officer, Peng Xiao, highlighted the ambitious scale of the project, which will eventually require up to one gigawatt of electricity from the grid. The facility aims to harness Kenya’s geothermal energy, aligning with Microsoft’s climate goals and ensuring a stable power supply for its operations.
This corporate collaboration was fortified in April when Microsoft invested $1.5 billion in G42. The investment was part of a broader strategy led by the Biden administration to curb Chinese influence in AI technology by fostering closer US-UAE business ties. As part of the deal, G42 agreed to sever its business relationships with Chinese companies, opting instead to align more closely with US interests.
Context and Broader Implications
The Abu Dhabi-based G42 has already begun training an open-source large-language AI model in Swahili and English, with the new data center expected to enhance these efforts. This expansion into Kenya is part of a broader initiative by the UAE to increase its influence in Africa, having committed approximately $100 billion to the continent over the past two years.
Microsoft’s recent closure of its Nigerian development center highlights ongoing challenges in Nigeria’s business climate, which has struggled to attract and retain foreign investment. The shift to Kenya, however, signals a strategic pivot towards more stable and sustainable environments for technological development.
This landmark project between Microsoft and G42 is poised to not only bolster Kenya’s position as a technological hub in East Africa but also to serve as a model for sustainable energy use in data center operations globally.
Credit: Nairametrics
