Microsoft Corporation, in collaboration with G42, announced plans to build a $1 billion data center in Kenya, powered by geothermal energy.
This project marks a significant investment in Africa’s digital infrastructure, following the closure of Microsoft’s African development center in Lagos, Nigeria, which led to about 200 job losses.
The data centre, to be located in Olkaria, Kenya, represents the first phase of a multi-year initiative aimed at boosting cloud computing capacity and services in East Africa.
The initial phase of the project will have a 100-megawatt capacity and is expected to become operational within two years.
G42, a UAE-based technology company, will oversee the construction due to Olkaria’s abundant geothermal resources, ensuring reliable power supply and supporting Microsoft’s climate goals.
The decision to close the Lagos centre underscores the challenging business environment in Nigeria, which faces difficulties in attracting and retaining international investors.
In contrast, the new Kenyan project reflects a strategic shift and expansion in Africa, leveraging the continent’s renewable energy potential and more favorable business conditions.
Kenyan officials, along with representatives from Microsoft, G42, and supported by the US and UAE governments, will soon sign a letter of intent.
This official endorsement underlines the importance of the project to regional development and international cooperation.
The collaboration between Microsoft and G42 is strengthened by a $1.5 billion investment by Microsoft in G42, an initiative supported by the Biden administration.
This investment is part of a broader strategy to counter Chinese influence in the region by fostering exclusive US partnerships.
Additionally, G42 is expanding its operations across Africa, aligning with UAE’s broader goal to significantly invest in the continent.
As part of this commitment, G42 will cease all business engagements with Chinese firms, focusing solely on collaborations with US-based companies.
This data center project not only represents a significant technological advancement for East Africa but also highlights the shifting geopolitical alliances and investment strategies aimed at enhancing digital infrastructure and economic growth in Africa.
