Microsoft is set to invest $1 billion in building a geothermal data center in Kenya, following the closure of a facility in Nigeria. This project aims to enhance cloud-computing capacity in East Africa, addressing frequent power outages in the region.
The first phase of this initiative will involve constructing a 100-megawatt facility in Olkaria, known for its abundant geothermal resources. G42, a key investor, will lead the project, with plans to complete the facility within the next two years.
In a strategic partnership with the US and UAE governments, Microsoft, G42, and Kenyan officials are due to sign a letter of intent this week. The project aligns with Microsoft’s climate goals and its commitment to advancing digital technology in Africa.
According to Microsoft President Brad Smith, the collaboration between G42 and Microsoft demonstrates the power of partnership in driving technological advancement. The project is seen as a significant milestone in promoting digital innovation in Kenya.
G42’s CEO, Peng Xiao, highlighted that the full project will require up to one gigawatt of electricity, contributing to the overall development of cloud infrastructure in the region. While the timeline and total cost were not specified, the project is a crucial step in enhancing cloud-computing capabilities in East Africa.
This investment comes after Microsoft’s $1.5 billion agreement with G42 earlier this year, aimed at limiting Chinese access to AI technology. As part of this agreement, G42 committed to discontinuing business relationships with Chinese companies and leveraging US technology.
Moreover, G42’s expansion into Kenya aligns with the UAE’s strategy to strengthen its footprint in Africa. With a substantial investment commitment in the continent, the UAE aims to enhance its geopolitical influence in the region.
Overall, the collaboration between Microsoft, G42, and Kenyan officials underscores a concerted effort to bolster cloud-computing infrastructure in East Africa. This project signifies a significant advancement in digital technology and demonstrates the transformative potential of strategic partnerships in driving innovation and growth in the region.
