Microsoft and G42 announce $1 billion geothermal data center in Kenya

phased the beginning of a multi-year plan to significantly increase cloud computing capacity in East Africa.

G42 will be responsible for the initial investment and handle construction of the facility in Olkaria, which has abundant geothermal resources – a major boon in a continent hit by power outages and one potential benefits to Microsoft's efforts to meet climate goals. The first phase center will have a capacity of 100 MW and is expected to be operational in about two years.

Ultimately, the entire project will require one gigawatt of power from the grid, G42 CEO Peng Xiao said in an interview. The companies did not say how long it would take to complete the entire project or how much it would cost.

Microsoft will use its initial cloud computing power to leverage its Azure products, boosting the company's ability to sell services in an East African region. Currently, Microsoft's closest data center for Kenyan customers is thousands of miles away in South Africa. As part of the deal, the Kenyan government has agreed to move more of its services to the cloud, which Microsoft hopes will boost overall demand. Finally, the data center complex will handle artificial intelligence services and can provide cloud computing to neighboring countries such as Uganda, Rwanda and Tanzania.

Microsoft and G42 announced this initiative as US President Joe Biden prepares to welcome Kenyan President William Ruto to Washington for a state visit, with the aim of deepening America's relationship with Africa. The continent is emerging as a new arena of global competition for the United States, as it seeks to counter the incursions of China and Russia there. Chinese companies such as Huawei Technologies Co. has invested heavily in Africa, building data centers, Internet services, monitoring systems and smart grids.

On Friday, Microsoft, G42 and Kenyan officials are expected to sign a joint letter expressing their intent to receive help from the US and UAE governments.

Microsoft President Brad Smith, who visited Kenya, where 500 Microsoft software developers work, said: 'I think this is the biggest step forward in increasing the availability of digital technology in history. country history'. 'This shows what the G42 and Microsoft have an opportunity to do together. What the US and the UAE can do together will help bring technology to new countries, especially especially across Africa'.

In April, Microsoft agreed to invest $1.5 billion in G42, a deal brokered by the Biden administration in an effort to limit China's access to AI technology. As part of the deal, G42 agreed to end business relationships with Chinese companies, including Huawei, and instead use American technology. President Brad Smith will join G42's board of directors, and G42 will use Azure for its AI applications.

G42 has businesses spanning everything from cloud computing to driverless cars. It is part of the $1.5 trillion empire of Sheikh Tahnoon bin Zayed Al Nahyan, one of Abu Dhabi's two deputy rulers, the United Arab Emirates' national security adviser and the brother of the country's president.

The company's push to invest in Kenya is part of the UAE's efforts to gain geopolitical influence in Africa. Over the past two years, the oil nation has committed to investing around $100 billion in the continent. The UAE is also competing with Saudi Arabia to become the region's AI superpower, and the G42 is at the center of these plans.

In Kenya, director Peng Xiao said, G42 will work on major language models in Swahili and English, and add other African languages ​​in the future. The company will also create AI models for agriculture and many other fields. Mr. Smith said Microsoft's cybersecurity division will provide customers in the region with protection from hackers and help bring wireless broadband to 20 million people, or about 40% of Kenya's population, by the end of the year. next year.

Mr Xiao said: 'This will take several years to give us a positive financial return. But we are not there to make short-term profits. We believe that this is a continent where we need to have a strong foothold' .

Lesley Montoya

Update 23 May 2024