Updated September 18, 2025- Microsoft and G42, a leading UAE-based artificial intelligence firm, are collaborating on a landmark $1 billion investment to establish a state-of-the-art, geothermal-powered one of Africa’s Largest Data Center in Kenya. The project marks a significant milestone for Africa’s digital infrastructure. The new data center will be the hub for a new Microsoft Azure East Africa Cloud Region, providing scalable and secure cloud computing and AI capabilities to businesses and organizations across Kenya and the wider East African region.
Through his X account, President William Ruto shared insight on constructing the 1GW Data Center. The data centre is set to be one of Africa’s largest. President William Ruto announced plans for partnering with Microsoft, Eco-Cloud, and G42 officials on the project. The project also aims to bring tech giants such as Eco-cloud and the G42 Investment group on board. The president of Microsoft announced X following a meeting in Nairobi with Brad Smith.
Factsheet
Key partners: Microsoft, G42, and KenGen
Investment: A landmark $1 billion digital investment package led by G42, which includes the data center and other initiatives.
Location: Olkaria geothermal fields, Naivasha, Kenya. This site is part of KenGen’s Green Energy Park.
Power source: The data center will be 100% powered by clean, renewable geothermal energy from the Olkaria fields.
Capacity: The facility is designed to have an initial capacity of 100 MW with the potential to scale up to 1 Gigawatt
Peng Xiao, CEO of G42, and various Eco-cloud officials were also in attendance. The president noted that the data centre serving the African continent is already in the works to ensure its implementation. Engineer John Tanui, the principal secretary of the State Department for Information and Communication Technology (ICT) and Digital Economy, attended the meeting alongside President Ruto and the investors for the data centre. He also noted that the facility will be a revolutionary investment powered by green energy. Kenya is a preferred hub for constructing the data centre as it easily leverages its wind and water resources for green energy.
The Significance of Constructing One of Africa’s Largest Data Center in Kenya
Kenya has become attractive to global companies, mainly due to the availability of green energy from wind and water. The construction of Africa’s largest data centre allows it to leverage this availability efficiently. The data centre will enable progress in economic activities in Kenya and the African continent as a whole. Major technological companies like Amazon, Apple, Google, and even Microsoft depend on data centres. These hyper-scale tech companies rely on data centres for their core operations. These companies are committed to fully transitioning to renewable energy usage for sustainability. For this reason, they aim to invest in countries with green energy sources, such as Kenya. Once completed, tech companies can take this opportunity to shift most of their core operations online.
Recently, a landmark agreement was made in Washington D.C. during President William Ruto’s state visit to the United States, where Microsoft and G42, a leading AI and cloud computing company based in the UAE, committed to developing a renewable energy-powered cloud data center in Kenya. As part of this ambitious project, G42 will build a sustainable, state-of-the-art data centre campus powered entirely by geothermal energy from KenGen’s iconic Olkaria geothermal fields.
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The State of the Region Regarding News on The Project’s Implementation
The construction of one of Africa’s largest data centres in Kenya comes at a precarious time as the country tries to stabilize economically. Kenyans expressed positivity, scepticism, and optimism following the announcement by Kenya’s president. Most Kenyans, though pleased about the project, have insight that the country’s priorities are misplaced. Most are unsure of its essence from reading comments on the president’s X post. Even so, the scale and significance that the project will have on Kenya and the African continent is unprecedented. It will facilitate the storage of digital data belonging to any organization. Others were keen to show optimism in constructing one of Africa’s largest data centres in Kenya. Some of the comments shared said, “Kenya is the gateway to Africa, this is a great project that will speed up the activation of Digital Superhighway in Kenya.”
Kenya at the Forefront in Investing in Africa’s Green Energy Advancement
Constructing one of Africa’s largest data centres in Kenya comes when Kenya prioritizes investment in green energy. Kenya has been in the spotlight regarding green energy; this was notable at the recent COP 28 in Dubai. Kenya has sealed landmark deals worth $4.48 billion in green energy investments in the past two years. Kenya signed seven deals with different partners to develop other projects. These projects tap into renewable energy resources to increase the country’s power generation. The projects are expected to supplement the already available green energy to support the demands of the data centre and other investments in the country.
Similar Projects
In a similar undertaking, MTN Group Ltd is engaging in advanced talks with the EU and US to construct AI data centres across Africa. This rollout by MTN will is set to improve Africa’s digital infrastructure and will generate thousands of jobs once it is implemented.
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The Worldwide Data Center Construction Market Expected to Hit $429 Billion by 2032
