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Microsoft and G42 to build geothermal-powered data center in Kenya, invest $1b on digital initiatives

Microsoft, in collaboration with G42, an advanced analytics and artificial intelligence company, has unveiled an ambitious venture to establish a geothermal-powered data center in Kenya. This initiative is part of a $1 billion investment earmarked for digital initiatives. Under this agreement, G42, alongside local partners, will spearhead the design and construction of a cutting-edge data center hub in Olkaria, Kenya, integrating state-of-the-art water conservation technologies.

The data center will serve as the operational nucleus for Microsoft Azure, facilitating the creation of a new East Africa Cloud Region. This region aims to furnish scalable, secure, and high-speed cloud and AI services, propelling cloud adoption and digital transformation throughout the region. Anticipated to be operational within the next two years, this venture signals a significant stride toward technological advancement in Kenya.

Kenyan President Dr. William Ruto emphasized the broader significance of the partnership, portraying it as a convergence of shared aspirations among three nations for a digitally empowered future. “This partnership is bigger than technology itself. It is about coming together of three countries with a common 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.”

“It embodies our collective aspiration to bridge the digital divide, accelerate technological innovation, and pave the way for a thriving digital economy that benefits the entire African continent and beyond,” he emphasized.

Brad Smith, Vice Chair and President of Microsoft, underscored the transformative potential of the collaboration, particularly for the global South, traditionally underserved by digital infrastructure. He said “This partnership between two companies and three countries highlights a real opportunity to bring digital technology to the Global South in a safe and secure manner.” He noted that the investment is the single largest and broadest digital investment in Kenya’s history and reflects Microsoft’s confidence in the country, the government, its people and the future of East Africa.

Peng Xiao, Group Chief Executive Officer of G42, added: “In partnership with Microsoft, we are excited to work with the Kenyan government to usher in a transformative era for the digital ecosystem in Kenya and the region. By establishing a green data center and developing AI tailored to the local culture, G42 is committed to fostering sustainable technological growth. This initiative will empower the Kenyan government and communities with robust, secure cloud services and AI capabilities, providing the foundation for a thriving digital economy across the region.”

Beyond the data center initiative, Microsoft and G42 will collaborate with Kenya’s Ministry of Information, Communications, and the Digital Economy to enhance internet connectivity to 20 million people nationwide. Additionally, efforts will be directed towards developing AI models tailored to local languages and supporting digital skills programs.