Microsoft, in collaboration with the Abu Dhabi-based AI firm G42, had initially earmarked USD 1 billion for the establishment of a geothermal-powered data center in Kenya. This initiative was aimed at creating a new Azure cloud region. Nevertheless, the approval process for the project has encountered a roadblock. The data center is projected to consume a staggering 1,000 megawatts of electricity, which would constitute a third of Kenya’s current total installed power capacity. Such a high demand raises significant concerns regarding the stability and security of the national power grid.

In light of these challenges, Microsoft has redirected its attention to South Africa, where it has pledged an investment of USD 329 million towards data center development. Meanwhile, Kenya has set an ambitious target to expand its total installed power capacity to 10,000 megawatts by 2030. However, in the immediate future, the country is unable to accommodate the substantial power requirements of the proposed data center.