Microsoft and G42 to invest $1 billion in cutting-edge Kenyan data centre

According to Microsoft on Wednesday, May 22, this move is part of its efforts to improve and expand cloud computing services in Kenya and East Africa.

Reuters reports that G42 and its partners will build the upcoming data centre in Kenya, powered by geothermal energy. This facility will enable access to Microsoft's Azure via a new cloud region for East Africa.

Ahead of a signing of an intent meeting between Microsoft, G42 and Kenya's Ministry of Information, Communications and the Digital Economy on Friday, May 24, Brad Smith, Microsoft's president shared that “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.”

Microsoft added that the data centre is expected to become operational within two years after the signing of definitive agreements.

G42 Chief Executive Officer Peng Xiao also stated that the entire project will require up to one gigawatt of electricity from the grid. Constructing the facility in Olkaria, an area abundant in geothermal resources, provides a significant advantage, as the project is expected to utilise 100 megawatts in the initial phase.

In May 2024, Microsoft announced the closure of its Africa Development Centre in Lagos, Nigeria, which led to job redundancies for some of its employees in the country.

Just over a year after its establishment, the tech giant decided to shut down the Africa Development Centre in Lagos, Nigeria, as part of its initiative to promote high-end engineering and innovation solutions.

A Microsoft spokesperson confirmed the closure on Wednesday, May 8 and attributed it to "organisational and workforce adjustments" inherent in managing the company's business operations.