As announced by President William Ruto, Kenya has now suspended the planned $1 billion data centre, which was to be built by Microsoft and UAE-based AI firm G42. The initial plan was for the data centre to run on geothermal power from the Olkaria geothermal field, and was billed as one of the major investments in KenGen’s Green Energy Park.
According to the President, the proposed data centre would require about 1 GW of power supply. Considering that Kenya currently has a total installed power capacity of 3 GW, the data centre would consume a disproportionate share of the country’s energy supply. The data centre was supposed to be operational by May 2026, two years after the deal between the Government of Kenya and the two companies were signed.
According to some government officials, a concept note for the project had already been declined for funding by the National Treasury. This effectively halted the progress of the project. By August 2025, government representatives and Microsoft executives knew that it would miss the original May 2026 completion target.
In the same speech announcing the project suspension, Ruto reiterated his goal of expanding Kenya’s power capacity to 10,000 MW, framing it as a requirement for industrialization and sustained economic growth.
With no material progress on the project reported since the signing of the deal, it had been pretty apparent that the project would be significantly stalled or would outright not push through. The suspension of the project is a reminder to keep expectations in check when it comes to the signing of project agreements, especially when they are not supported by existing infrastructure, technical capabilities, and project pipelines.
Source: Business Insider Africa and The Star Kenya
