Microsoft Corporation and G42, a leading artificial intelligence company in the United Arab Emirates, are collaborating to build a $1 billion geothermal-powered data center in Kenya.
This development comes on the heels of Microsoft’s decision to shut down its African development center in Lagos, Nigeria, resulting in approximately 200 job losses.
According to Bloomberg, this project represents the initial phase of a multiyear effort to enhance cloud-computing capacity in East Africa.
The initial investment and construction responsibilities for the facility, located in Olkaria, an area rich in geothermal resources, will be handled by G42. This location was chosen to mitigate the region’s frequent power outages and align with Microsoft’s climate goals.
The project’s first phase is set to have a capacity of 100 megawatts and is expected to be operational within two years. Tomorrow, Microsoft, G42, and Kenyan officials are scheduled to sign a letter of intent, facilitated by the US and UAE governments.
Microsoft President Brad Smith, who has prior experience with Kenya, emphasized the significance of this project in embedding digital technology within the country’s history. He praised the partnership with UAE’s G42, highlighting the potential for significant advancements in digital technology across Africa through their collaboration.
“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,” Smith stated.
G42 Chief Executive Officer Peng Xiao noted that the full project would eventually require up to one gigawatt of electricity from the grid. The partnership between Microsoft and G42 was strengthened in April when Microsoft agreed to invest $1.5 billion in G42, an initiative driven by the Biden administration to counter Chinese influence and access to AI technology. As part of this deal, G42 agreed to sever its business ties with Chinese companies, opting to collaborate exclusively with the United States.
G42’s expansion into Kenya aligns with the UAE’s broader strategy to bolster its geopolitical influence in Africa, with the country committing to invest approximately $100 billion in the continent over the past two years.
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