Microsoft Announces $1bn Data Centre In Kenya Two Weeks After Shutting Its Lagos Facility

Microsoft has announced plans to build a $1 billion geothermal-powered data centre in Kenya in collaboration with G42, a top artificial intelligence firm in the United Arab Emirates.

The announcement comes two weeks after the company closed its African Development Centre (ADC) in Lagos for reasons associated with the country’s failing economy.

According to Bloomberg, this project marks the first phase of a multiyear initiative to boost cloud computing capacity and services in East Africa.

It reported that G42 would lead the initial investment and handle the facility’s construction in Olkaria, which has abundant geothermal resources, to bypass the issue of power outages.

Microsoft, G42, and Kenyan officials are scheduled to sign a letter of intent on Friday, which was drafted with the help of the US and UAE governments.

Speaking on this development, the President of Kenya, Dr. William Ruto, stated, “This partnership is bigger than technology itself.

“It is about coming together of three countries with a shared 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, he said.

Microsoft President Brad Smith said, “This is the single biggest step to advance the availability of digital technology in, I think, the country’s history.”

While Kenya has clinched this billion-dollar investment, several companies have pulled out of Nigeria since 2023 due to insecurity and economic reasons.

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