Microsoft and G42 announced a $1 billion investment in Kenya, marking the largest private-sector digital investment in the country's history. Key objectives include building a green data center powered by Kenya's 791.5 MW geothermal capacity within 24 months, establishing an East Africa Innovation Lab to support 100 startups, expanding broadband to reach 10 million more people by 2025, and training 200,000 individuals in digital skills over five years. The Kenyan government will also move services to Microsoft's cloud to support the investment.
On Wednesday, the largest single private-sector digital investment in Kenya's history was announced. The $1 billion investment will come from Microsoft and G42, a leading artificial intelligence company based in the UAE.
The announcement coincides with Kenya President William Ruto's visit to the United States this week to discuss closer economic integration between the two nations.
“This is the single biggest step to advance the availability of digital technology in, I think, the country’s history,” said Microsoft President Brad Smith, who has been visiting Kenya, where the company has 500 software developers, for almost 15 years. “This shows what G42 and Microsoft have the opportunity to do together that neither one of us could do separately. I frankly think it shows that what the United States and the United Arab Emirates can do together that helps bring technology to new countries, especially across Africa.”
The investment objectives have several key components and will enhance Kenya's digital infrastructure. A primary use of the proceeds will be to construct a data center within 24 months to support Microsoft Azure's offerings in East Africa. The data center will be "green" and powered by Kenya's geothermal energy reserves.
Kenya is home to one of the largest geothermal fields in the world with an installed capacity of 791.5 MW. Electricity is generated in this manner by using steam deep within the earth's crust to vaporize water, or other liquids, to turn turbines. In contrast to wind and solar, generation by geothermal provides a reliable and consistent base load supply of electricity with lower environmental impacts. The Olkaria Geothermal Plant, located in the Great Rift Valley, is a major contributor to this capacity.
An East Africa Innovation Lab will be established to support startups in the region working to solve problems requiring cloud and AI solutions. The lab is expected to incubate at least 100 startups within the first three years, fostering innovation and entrepreneurship in the tech sector.
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Additionally, investments will be made in connectivity to expand existing digital infrastructure in the region. This includes the expansion of broadband access to underserved areas, aiming to connect an additional 10 million people to the internet by 2025.
A significant portion of the investment will be directed towards skills development and training. Over the next five years, it is projected that 200,000 individuals will receive training in digital skills, with a focus on women and youth.
The development of local language (e.g., Swahili) and culturally attuned AI models will ensure that technological advancements are accessible and relevant to the local population. This initiative is expected to increase digital literacy and AI adoption across various sectors, including education, healthcare, and agriculture.
The Kenyan government has agreed to support the investment by moving more of its services and data into Microsoft's cloud services. This move is anticipated to enhance government efficiency and transparency, benefiting over 50 million citizens by streamlining public service delivery.
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