Microsoft Announces $1 Billion Data Centre in Kenya, One Month After Shutting Operations in Nigeria

Microsoft Announces $1 Billion Data Centre in Kenya, One Month After Shutting Operations in Nigeria

by Victor Ndubuisi

Microsoft has revealed intentions to build a $1 billion geothermal data centre in Kenya in collaboration with G42, a top artificial intelligence company based in the United Arab Emirates.

Due to Nigeria’s worsening economic situation, the IT giant closed its African Development Centre (ADC) in Lagos just two weeks before to making this news.

The new data centre is intended to improve cloud computing services and capacity throughout East Africa. It will be situated in Olkaria, a region abundant in geothermal energy. G42 will be in charge of the facility’s construction and will lead the initial investment. Olkaria’s geothermal resources will aid in reducing the effects of power outages.

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This project is a part of a multiyear plan to increase the area’s digital infrastructure, according to Bloomberg. G42, Microsoft, and Kenyan officials, with support from the US and UAE governments, are scheduled to sign a letter of intent for this project on Friday.


Kenyan President Dr. William Ruto highlighted the significance of this partnership, stating, “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 added.


Microsoft President Brad Smith echoed this sentiment, describing the project as the most significant advancement in digital technology availability in Kenya’s history.

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

As Kenya manages to acquire this sizeable investment, Nigeria continues to see a drop in the number of international businesses operating there. Since 2023, a number of corporations have left Nigeria due to economic instability and security worries.



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