Kenya's President warns Microsoft’s $1 billion AI data center will "switch off half the country" — but my government insists it hasn't failed or withdrawn from the project

Kenya's President William Ruto delivers a speech at a podium with the Kenyan emblem. Behind him are the Kenyan flag and the Microsoft logo.
President William Ruto says the data center would "switch off half the country" to keep itself running. (Image credit: Getty Images | Luis Tato, Microsoft)

As generative AI becomes more widely adopted, major tech brands like Microsoft and OpenAI have emphasized the need for additional data centers to deliver the vast computing power required, along with specialized hardware and advanced cooling required to train and operate modern AI models at scale.

In May 2024, Microsoft entered into a partnership with UAE-based AI firm G42 to invest $1 billion in a data center in my home country, Kenya, as part of its broader strategy to expand cloud-computing services in East Africa.

However, Bloomberg reports that the project has since stalled after the Kenyan government failed to commit to paying for the annual capacity ‌Microsoft had requested to run Azure in the region. President William Ruto indicated that the project's power requirements would need to "switch off half the country" to keep the facility running (via Tom's Hardware).

In the interim, Kenya’s Ministry ​of Information, John Tanui, explained that the country has "not failed or withdrawn,” and that it's moving forward with discussions about the project.

KPLC can barely keep the lights on for the basics

(Image credit: Getty Images | SIMON MAINA)

For context, Kenya's total installed electricity capacity sits between 3,000 and 3,100 megawatts. Keep in mind, the country's peak demand hit a record 2,444 megawatts in January, according to KenGen, Kenya's government-owned electricity provider.

G42 was expected to lead the construction of the project, which was to be based in Kenya’s Rift Valley at the Olkaria region. The first phase targeted 100 megawatts, with a long-term plan to scale up to 1 gigawatt.

I live in Nairobi, Kenya's capital, and I can say openly that I face sporadic power disruptions multiple times every month. The situation is worse in remote areas, with some outrighly not being connected to the national grid.

With this in mind, Microsoft's massive $1 billion data center in Kenya seems like a hard sell and would stress our country's electricity capacity. This is on top of the health concerns, air pollution, and massive demand for cooling water that come with the construction of data centers.

This hits closer to home, and while it promises great economic benefits in the long run, Kenya isn't exactly ready to take on such a grand project without critical compromises.

How would Microsoft's massive AI data center affect Kenya's national power grid? Share your thoughts in the comments.



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Kevin Okemwa
Contributor

Kevin Okemwa is a seasoned tech journalist based in Nairobi, Kenya with lots of experience covering the latest trends and developments in the industry at Windows Central. With a passion for innovation and a keen eye for detail, he has written for leading publications such as OnMSFT, MakeUseOf, and Windows Report, providing insightful analysis and breaking news on everything revolving around the Microsoft ecosystem. While AFK and not busy following the ever-emerging trends in tech, you can find him exploring the world or listening to music.

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