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Slashdot: Microsoft's $1 Billion AI Data Center Will 'Switch Off Half of Kenya'

Microsoft's $1 Billion AI Data Center Will 'Switch Off Half of Kenya'
Published on 2026-05-12T19:00:00Z
Microsoft and G42's planned $1 billion AI data center in Kenya has stalled amid disagreements over power commitments, with President William Ruto saying the country would need to "switch off half the country" to support the project at full scale. Tom's Hardware reports: The project, announced in May 2024 during Ruto's visit to Washington, was supposed to bring a geothermal-powered data center to the Olkaria region in Kenya's Rift Valley. G42 was to lead construction, with the facility running Microsoft Azure in a new East Africa cloud region. The first phase targeted 100 megawatts of capacity and was expected to be operational by this year, with a long-term goal of scaling to 1 gigawatt. President Ruto isn't exaggerating about shutting off half the country's power. Kenya's total installed electricity capacity sits between 3,000 and 3,200 megawatts, and peak demand reached a record 2,444 megawatts in January, according to data from KenGen, the country's government-owned electricity producer. The full 1 gigawatt build would therefore have consumed roughly a third of the country's total capacity, and even the first 100 megawatts would have required a significant share of the Olkaria geothermal complex's output, which currently generates around 950MW across all its plants. John Tanui, principal secretary at Kenya's Ministry of Information, told Bloomberg that the project hasn't been withdrawn and that talks are continuing, adding that the "scale of the data center they [Microsoft] wanted to do still requires some structuring." A separate 60-megawatt project with local developer EcoCloud is also still under discussion. [...] Microsoft is spending $190 billion on capex in 2026, and the company adds approximately 1 gigawatt of data center capacity every three months globally. But power constraints are proving to be a universal bottleneck: nearly half of planned U.S. data center builds this year have been delayed or canceled due to shortages of electrical infrastructure.

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