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Microsoft, G42 Partner in KES 132 Billion Green Data Center Investment

Sakwa K by Sakwa K
May 8, 2026
in News
Reading Time: 3 mins read
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A partnership between UAE-based AI firm G42 and American tech giant Microsoft will see Kenya benefit from a data center.

The $1 billion (KES 132 billion) investment will set up a Kenyan data center completely reliant on geothermal energy set up in the country. G42, in collaboration with Kenyan partner Ecocloud, will design and build the Kenya data center.

The EcoCloud-G42 Kenya data center is planned to have an initial capacity of 100 MW. It is expected to be operational within two years. The vision is to scale up to 1GW in the future.

This data center will house Microsoft Azure, offering a new East African cloud region. This will provide businesses, customers, and partners with access to scalable cloud and AI services, driving wider cloud adoption in the region.

The data center will also feature “state-of-the-art water conservation technology,” Microsoft said. The partnership was announced as part of President William Ruto’s state visit to the US this week.

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President Ruto said, “This partnership is bigger than technology itself. It is about the 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.”

Geothermal as a choice of energy is due both to reliance on clean technology and to combat frequent power outages that disrupt cloud computing in East Africa.

Kenya Electricity Generating Company (KenGen), the nation’s state-owned energy provider, operates four power plants in Olkaria, Naivasha.

These facilities boast a combined installed capacity exceeding 940.0 megawatts. One of the plants is scheduled to be upgraded by Toshiba ESS.

This news comes after Kenya’s Ecocloud and G42 announced they are building a green Kenya data center at KenGen’s Green Park in March.

G42 AI Swahili Model

G42 is using its data centers in the US to create a freely available large language AI model that can handle both Swahili and English to support Kenya’s unique cultural and linguistic landscape.

In addition, Microsoft and G42 are teaming up to boost support for Kenyan and East African universities, leveraging resources from the Microsoft Africa Research Institute, the AI for Good Lab, and the Mohammed Bin Zayed University of Artificial Intelligence.

Peng Xiao, group chief executive officer of G42, said: “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.”

To further innovation in East Africa, the two companies are launching a new innovation lab in Nairobi. This hub will offer design workshops, rapid prototyping tools, and mentorship from experienced developers to help Kenyan and regional startups, businesses, and organizations build their cloud and AI solutions.

Tags: AIData CenterG42KenyaMicrosoftUAEWilliam Ruto
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Sakwa K

Sakwa K

My Bio is in my written articles. Talk to me: [email protected]

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