Kenya has suspended a $1 billion Microsoft data center project, originally a centerpiece of its tech-hub strategy, after officials concluded the country’s electricity supply could not support the facility. The project, announced during President William Ruto’s 2024 visit to Washington, was expected to run largely on geothermal energy and provide cloud services through Microsoft Azure. However, Ruto said the proposed center would consume nearly a third of Kenya’s current 3,000-megawatt power capacity, potentially disrupting electricity access nationwide. The setback exposes a structural gap across Africa where demand for AI and cloud services is growing faster than energy infrastructure can support. Ruto is now using the stalled project to galvanize support for his government’s 10,000-megawatt capacity target by 2030, requiring approximately $38 billion in investment.
Business Insider Africa
