Microsoft And G42 To Launch $1B Geothermal-Powered Data Center In Kenya
Microsoft Corp. and G42, a leading artificial intelligence firm from the United Arab Emirates, have unveiled plans to build a $1 billion geothermal-powered data center in Kenya.
This project marks the initial phase of a multiyear strategy to boost cloud-computing capacity in East Africa.
Harnessing Geothermal Energy for Sustainable Development
The data center will be constructed in Olkaria, an area rich in geothermal resources, making it an ideal location for a sustainable energy project.
G42 will lead the initial investment and oversee the facility’s construction. In its first phase, it is expected to have a capacity of 100 megawatts and become operational within two years.
Boosting East Africa’s Digital Infrastructure
Microsoft’s involvement in this project will establish a new East African region for its Azure products, enhancing its service offerings for local customers.
Currently, the closest Microsoft data center for Kenyan users is South Africa.
This new facility will reduce latency and improve service reliability, supporting the Kenyan government’s plan to move more of its services to the cloud.
In addition to cloud computing, the data center complex will provide artificial intelligence services and has the potential to extend cloud services to neighboring countries like Uganda, Rwanda, and Tanzania.
“This is the single biggest step to advance the availability of digital technology in, I think, the country’s history,” said Microsoft President Brad Smith, according to Bloomberg.
“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.”
Strategic Geopolitical And Economic Implications
This initiative’s announcement coincides with Kenyan President William Ruto’s state visit to Washington, which is hosted by U.S. President Joe Biden.
This move is part of a broader effort by the U.S. to strengthen ties with Africa amidst increasing investments from Chinese companies like Huawei Technologies Co.
In April, Microsoft committed $1.5 billion to G42, a deal facilitated by the Biden administration to limit Chinese access to AI technology.
As part of this agreement, G42 has agreed to sever ties with Chinese companies and adopt U.S. technology, including Microsoft’s Azure, for its AI applications.
Feature Image Credit: KenGen
