NAIROBI, Kenya, May 22 – Microsoft Corporation, in partnership with G42, a technology group, has announced a $1 billion deal for digital investments in Kenya.
The comprehensive digital ecosystem initiative for Kenya will be the largest single private-sector digital investment in the country’s history and will support economic development across the East Africa region.
One of the Kenyan investment priorities is a state-of-the-art green data center that will be built by G42 and its partners to run Microsoft Azure in a new East Africa Cloud Region.
A letter of intent regarding the multi-billion-dollar deal, which was crafted with the assistance of the governments of the United States and the United Arab Emirates, will be signed on Friday between Microsoft, G42, and Kenya’s Ministry of Information, Communications, and the Digital Economy.
As part of the agreement, G42, in collaboration with local partners, will design and build a state-of-the-art data center campus in Olkaria, Kenya, run entirely on renewable geothermal energy and designed with state-of-the-art water conservation technology.
The data center will run on and provide access to Microsoft Azure through a new East Africa Cloud Region, which will become operational within 24 months.
This cloud region will provide customers access to scalable, secure, high-speed cloud and AI services to accelerate cloud adoption and the digital transformation of businesses, customers, and partners across Kenya and East Africa.
President William Ruto, who is on his 4-day state visit to the United States, said the initiative will bridge the digital divide, accelerate technological innovation, and pave the way for a thriving digital economy that benefits the entire African continent.
“This partnership is bigger than technology itself. It is about coming together of three countries with a common vision of a nation empowered by technology, where every citizen has the opportunity to thrive in the global digital landscape. It’s about building a future where Kenya flourishes as a digital leader,” said President Ruto.
He emphasized, “In the spirit of mutual growth and shared prosperity, this LOI is a stepping stone toward a brighter, and more connected and digitally empowered future for the USA, Kenya and the UAE.”
Vice Chair and President of Microsoft Brad Smith stated that the partnership between two companies and three countries highlights a real opportunity to bring digital technology to the Global South in a safe and secure manner.
“This represents the single largest and broadest digital investment in Kenya’s history and reflects our confidence in the country, the government, its people and the future of East Africa,” said Brad, Microsoft’s president.
Peng Xiao, group chief executive officer of G42, added, “In partnership with Microsoft, we are excited to work with the Kenyan government to usher in a transformative era for the digital ecosystem in Kenya and the region by establishing a green data center and developing AI tailored to the local culture.
Xiao affirmed that G42 is committed to fostering sustainable technological growth to empower the Kenyan government and communities with robust, secure cloud services and AI capabilities.
