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Microsoft–G42 Kenya AI Data Center Stalls Over Power Guarantees and Grid Limits

Talks now center on a downsized plan due to Kenya’s tight power supply requirements.

Overview

  • Bloomberg reporting cited by tech outlets says the $1 billion project paused after Kenya declined to guarantee the annual capacity payments Microsoft sought.
  • President William Ruto warned the facility would need power that could “switch off half the country,” underscoring the strain on the grid.
  • The plan targeted a geothermal site at Olkaria with G42 building the facility to run Microsoft Azure, starting at about 100 megawatts.
  • Kenya has roughly 3,000–3,200 megawatts of installed capacity and hit a 2,444 megawatt peak in January, leaving limited headroom for a large new load.
  • Kenya’s ICT ministry says the project is not withdrawn and negotiations continue, with a separate 60 megawatt EcoCloud proposal still under discussion.