Microsoft, G42 and EcoCloud Partner to Build Green AI Data Center in Kenya
On 22 May 2024, Microsoft announced that it is partnering with UAE-based #AI firm G42 to build a data center in Kenya. The data center will run on geothermal energy and have a capacity of up to one gigawatt (GW). The level of #FDI is estimated at USD 1 billion.
The data center in Kenya will provide cloud computing services to the East African region. G42 and Microsoft have started working to build open-source large language models (#LLM) in Swahili, which is the lingua franca across East Africa. It is worth noting that Microsoft has invested USD 1.5 billion into G42 and is working on similar projects in the Middle East, Central Asia, and now Africa.
On 25 May 2024, Microsoft, G42, and the Kenyan Ministry of Information, Communications & the Digital Economy signed a letter of intent (LoI) during Kenyan President William Ruto’s state visit to the USA.
“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.”
Kenyan President William Rut
As part of the agreement, the partners will collaborate to:
- Develop a local-language AI model
- Set up an Innovation Lab focused on AI
- Enhance digital connectivity and broadband access
The geothermal-rich region of Olkaria in south-west Kenya has been identified for setting up the data center. The Kenya Electricity Generating Company (KenGen) already has four geothermal power plants in Olkaria with an installed capacity of over 700 MW.
“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.”
G42 CEO PENG Xiao
Local operator EcoCloud was selected in March 2024. EcoCloud already has a geothermal-powered data center at the KenGen Green Energy Park in Olkaria. The project, codenamed ‘Project Eagle’, has a capacity of 24 MW and underwent a groundbreaking ceremony in September 2023. In a special deal, KenGen will supply geothermal electricity to data centers at a special rate of $0.07 per kWh.
Initially, the data center will have a capacity of 100 MW but can eventually be expanded to 1 GW. The data center is expected to be completed within two years of the parties signing the definitive contract.
“This project is not just about bricks and mortar or data servers; it’s about the future. The Olkaria Ecocloud Data Center will be a beacon of sustainability and a hub for innovation within the African continent.”
EcoCloud CEO Amos Siwoi