- Microsoft and G42 plan to invest $1 billion in a Kenya data centre powered by geothermal energy.
- The partnership aims to expand cloud-computing services in East Africa.
- The data centre will become operational within two years of the parties signing definitive agreements.
Microsoft is collaborating with UAE-based AI firm G42 to invest $1 billion in a new data centre in Kenya. The data centre, built by G42 and its partners, will leverage geothermal energy and offer access to Microsoft’s Azure via a new cloud region specifically for East Africa.
Why it’s important
Abu Dhabi-based G42, which received a $1.5 billion investment from Microsoft last month, has started training an open-source large-language AI model in Swahili and English. The partnership between Microsoft and G42 aims to enhance digital infrastructure in East Africa, promoting technological advancement and economic growth in the region.
Kenyan President William Samoei Ruto stated that, “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.”
Also read: ESR Group to build its fourth data centre in Tokyo
Context
Tech companies like Amazon.com, Microsoft, and Alphabet are investing heavily in new data centres across various regions to meet the surging demand for cloud and generative AI-related services. This trend reflects the growing importance of robust and scalable cloud infrastructure to support a myriad of applications, from enterprise solutions to consumer services.
Also read: Google invests $1.14 billion in Hamina data centre in Finland
What’s next
The letter of intent for this project will be signed on Friday between Microsoft, G42, and Kenya’s Ministry of Information, Communications, and the Digital Economy. This signing will coincide with Kenya’s President William Ruto’s state visit to the United States. Microsoft has announced that the data centre is expected to become operational within two years of signing the definitive agreements.
By establishing this data centre, Microsoft and G42 are not only investing in technological infrastructure but also in the future of East Africa’s digital economy. The President emphasised, “In the spirit of mutual growth and shared prosperity, this LOI is a stepping stone toward a brighter, more connected and digitally empowered future for the USA, Kenya and the UAE. It embodies our collective aspiration to bridge the digital divide, accelerate technological innovation, and pave the way for a thriving digital economy that benefits the entire African continent and beyond.”
