Microsoft, G42 to invest on geothermal-powered data centre in Kenya

KenGen's newest 83MW geothermal power plant, Olkaria I Unit 6 (source: KenGen)

Carlo Cariaga 23 May 2024

Microsoft and UAE-based AI firm G42 is set to invest $1 billion for various projects as part of a joint initiative with Kenya’s Ministry of Information, Communications, and Digital Economy. The letter of intent formalizing this relationship will be signed on 24 May 2024 during the state visit of Kenyan President William Ruto to the USA.

As part of the agreement, G42 will be working with local partners to build a data centre campus that will run on geothermal power and will run Microsoft Azure for a new East Africa Cloud Region. This data centre is planned to become operational within 24 months of signing the definitive agreements.

The initiative will also four additional pillars that will be pursued with local partners:

• local-language AI model development and research;
• an East Africa Innovation Lab and broad AI digital skills training;
• investments on international and local connectivity; and
• collaboration with the Kenyan government to support safe and secure cloud services across East Africa.

G42 had recently signed a deal with Kenya’s EcoCloud for a Mega Data Center that will initially tap into 100 MW of geothermal power from the Olkaria region, with possibility of expansion up to 1 GW. Soon after, G42 secured a $1.5 billion strategic investment from Microsoft to collaborate on AI and digital transformation initiatives.

“This partnership is bigger than technology itself. It is about coming together of three countries with a common 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,” said Dr Ruto, Kenya’s President.

“This partnership between two companies and three countries highlights a real opportunity to bring digital technology to the Global South in a safe and secure manner,” added 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.”

“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 center and developing AI tailored to the local culture, G42 is committed to fostering sustainable technological growth,” further said Peng Xiao, group chief executive officer of G42.

Kenya had previously signed a $600 million deal for a data centre supplied by geothermal power in Olkaria in partnership with local company EcoCloud.

Source: TechPoint Africa, ChimpReports, and G42 (1 and 2)