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Kenya Secures $1 Billion Investment from Microsoft and UAE’s G42 for Geothermal Data Center

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Microsoft and G42, an AI firm based in the United Arab Emirates, have announced plans for digital investments in Kenya. This initiative is in collaboration with Kenya’s Ministry of Information, Communications, and Digital Economy. Microsoft stated that G42 would spearhead the effort to secure an initial $1 billion investment for various projects under the initiative. On Friday, May 24, 2024, Microsoft, G42, and Kenya’s Ministry of Information, Communications, and Digital Economy will sign a letter of intent to formalize the transaction.

This development coincides with President William Ruto’s state visit to the United States, which Microsoft notes as the first visit by a sitting African head of state in nearly two decades.

Under the agreement, G42 will work with local partners to establish a state-of-the-art data center campus. This facility will be powered by renewable geothermal energy and utilize water conservation technology.

“The data center will operate on and offer access to Microsoft Azure via a new East Africa Cloud Region, set to become operational within 24 months following the signing of the definitive agreements.”

Other projects under the initiative include the development of AI models in Swahili and English, as well as the launch of AI societal services. Microsoft has announced that G42 has started training an open-source language AI model in Swahili and English, utilizing its data infrastructure located in the United States.

Moreover, Microsoft and G42 plan to set up an East African Innovation Lab in Nairobi. This lab will aid businesses and organizations in the development and implementation of cloud and AI services. Additionally, the partnership will provide a variety

Other projects under the initiative include the development of Swahili/English AI models and the launch of AI societal services. Microsoft stated that G42 has begun training an open-source language AI model in Swahili and English using its data infrastructure in the United States.

Moreover, Microsoft and G42 plan to establish an East African Innovation Lab in Nairobi to assist businesses and organizations in developing and implementing cloud and AI services. Additionally, the partnership will offer a range of digital and AI skills, including a cybersecurity training program designed to train over 2,000 people annually.

The initiative also focuses on expanding Internet connectivity and collaborating with the Kenyan government to support secure and safe cloud services throughout East Africa.

With the technical assistance and support from G42 and Microsoft, Kenya is set to establish a new data center as part of a “trusted data zone.” This initiative will allow data from other countries to be governed by their local laws, even while stored and residing in Kenya.

In February 2024, Airtel Africa announced its plans to open a new data center in Nairobi. This will be the second such facility in Africa, following the one in Nigeria.

This isn’t Microsoft’s first investment in Kenya’s digital economy. The company already has a development center in Nairobi, known as the African Development Centre (ADC), which was inaugurated in 2019.

It also has a center in Nigeria but recently laid off its engineering team. However, it has denied shutting down and stated that the Africa Development Centre in Kenya remains unaffected.

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Written by Grace Ashiru

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