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Microsoft to build $1 bn geothermal data centre in Kenya following Nigeria facility closure

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In a groundbreaking collaboration, Microsoft Corp. and G42, the leading artificial intelligence firm from the United Arab Emirates, are set to construct a $1 billion geothermal-powered data center in Kenya. This ambitious project marks the first phase of a multiyear initiative aimed at significantly boosting cloud-computing capacity in East Africa, as reported by Bloomberg.

The data center will be located in Olkaria, an area known for its rich geothermal resources. This location is particularly advantageous for the project, as it addresses one of the continent’s major challenges—power outages—while also supporting Microsoft’s climate goals. G42 will spearhead the initial investment and oversee the construction of the facility.Microsoft

The first phase of the data center project will have a capacity of 100 megawatts and is expected to become operational within approximately two years. The project represents a significant leap in the availability of digital technology in Kenya, according to Microsoft President Brad Smith, who has been visiting Kenya for nearly 15 years. Smith highlighted the importance of the project, noting that Microsoft employs 500 software developers in the country.

On Friday, Microsoft, G42, and Kenyan officials are scheduled to sign a letter of intent, a document that has been crafted with assistance from the US and UAE governments. Smith emphasized the collaborative nature of the project, stating, “This shows what G42 and Microsoft have the opportunity to do together that neither one of us could do separately. I frankly think it shows that what the United States and the United Arab Emirates can do together that helps bring technology to new countries, especially across Africa.”

Also, read; Colorado Teen Faces 60 Years in Jail for Setting Fire to African Family’s Home Over Stolen iPhoneMicrosoft to build $1 bn geothermal data centre in Kenya following Nigeria facility closure

Long-Term Vision and Investment

The full project, once completed, will require up to one gigawatt of electricity from the grid, according to G42 Chief Executive Officer Peng Xiao. While the companies have not specified the total duration or final cost of the entire project, the initiative is poised to be a substantial investment in the region’s digital infrastructure.

In April, Microsoft agreed to invest $1.5 billion in G42, a deal facilitated by the Biden administration to curb Chinese access to advanced AI technology. As part of the agreement, G42 committed to terminating its business relationships with Chinese companies, including Huawei, and instead using US technology. This strategic move underscores the geopolitical significance of the project.

UAE’s Strategic Investments in Africa

G42’s expansion into Kenya aligns with the UAE’s broader strategy to enhance its geopolitical influence in Africa. Over the past two years, the oil-rich nation has committed to investing approximately $100 billion across the continent. The construction of the geothermal-powered data center is a testament to the UAE’s commitment to supporting technological advancement and infrastructure development in Africa.Microsoft to build $1 bn geothermal data centre in Kenya following Nigeria facility closure

The $1 billion geothermal data center project by Microsoft and G42 in Kenya is set to transform the digital landscape in East Africa. By leveraging the region’s geothermal resources, the project not only addresses power reliability issues but also aligns with global climate goals. As Microsoft and G42 collaborate on this ambitious initiative, it represents a significant step forward in technological and economic development for Kenya and the broader African continent.

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