Microsoft Kenya Data Center Stalls Over Power Capacity Disagreements

Microsoft and G42 planned a $1 billion data center in Kenya, but the project has stalled due to disagreements over power capacity. Kenyan President William Ruto said the facility would require the country to "switch off half the country" to meet its power requirements.

Project requires 1 GW, exceeding Kenya's grid capacity

The first phase of the data center targeted 100 megawatts of capacity, with a long-term goal of scaling to 1 gigawatt. Kenya's total installed electricity capacity sits between 3,000 and 3,200 megawatts, and peak demand reached a record 2,444 megawatts in January. For comparison, the Olkaria geothermal complex currently generates around 950 megawatts.

The $1 billion project was described by Microsoft President Brad Smith as the "single biggest step forward" for digital technology. However, John Tanui, principal secretary at Kenya's Ministry of Information, noted that the "scale of the data center they [Microsoft] wanted to do still requires some structuring."

Talks between Microsoft and the Kenyan government are continuing, and the project has not been withdrawn. Microsoft has not confirmed a revised timeline or capacity plan for the facility.