Tech giant Microsoft has announced a groundbreaking partnership with G42, the United Arab Emirates’ top artificial intelligence firm, to invest $1 billion in constructing a geothermal-powered data center in Kenya. This announcement follows closely on the heels of Microsoft’s decision to close its African Development Centre in Lagos two weeks prior.
The investment initiative encompasses four additional pillars, which will be pursued alongside local partners. These pillars include local-language AI model development and research, the establishment of an East Africa Innovation Lab, international and local connectivity investments, and collaboration with the government of Kenya to bolster safe and secure cloud services across East Africa.
In response to the announcement, President Dr. William Ruto emphasized that the partnership transcends technology itself. “It represents the convergence of three nations with a shared vision of empowering our nation through technology, ensuring every citizen can thrive in the global digital landscape,” he stated. “It’s about forging a future where Kenya emerges as a digital leader.”
The President underscored that this Letter of Intent (LOI) serves as a pivotal step toward fostering mutual growth and shared prosperity. “It signifies a pathway to a brighter, more interconnected, and digitally empowered future for the USA, Kenya, and the UAE,” he added.
According to an official statement by Microsoft, this comprehensive digital investment initiative is part of a collaboration with the Republic of Kenya’s Ministry of Information, Communications, and the Digital Economy. Upon completion, the geothermal-powered data center will significantly enhance cloud-computing capacity in East Africa.
Microsoft has confirmed that the data center is slated to become operational within two years of signing definitive agreements. The facility will run on and provide access to Microsoft Azure through a new East Africa Cloud Region, further facilitating cloud adoption and digital transformation across Kenya and East Africa.
Read also: Microsoft to shut down its Lagos-based Africa Development Center.
In collaboration with Microsoft and other stakeholders, G42 will spearhead an initial investment of $1 billion for the various components outlined in the comprehensive package. As part of this agreement, G42, in conjunction with local partners, will design and construct a state-of-the-art data center campus in Olkaria, Kenya, powered entirely by renewable geothermal energy and equipped with cutting-edge water conservation technology.
The East Africa Innovation Lab, slated for launch in Nairobi, will provide support for startups, entrepreneurs, companies, and organizations in developing and implementing cloud and AI services. Additionally, Microsoft and G42 will collaborate with local partners to offer digital and AI skills programs, including cybersecurity training and business skilling initiatives, to create a future-ready workforce.
This landmark partnership underscores a shared commitment to bridging the digital divide, fostering technological innovation, and paving the way for a thriving digital economy in Kenya and beyond.
