Microsoft's $1 billion Kenya AI data center could require switching off "half the country"

[midian182]

A hot potato: Microsoft and Abu Dhabi-based AI company G42's plan to build a $1 billion data center in Kenya sounded like a good idea for the African nation. It would bring foreign investment, a new Azure cloud region, and a facility powered by geothermal energy, but there's a problem. According to Kenyan officials, the project would require a massive amount of electricity in a country where the grid is nowhere near ready for AI-era demands.

The project was announced in May 2024 during Kenyan President William Ruto's state visit to Washington. G42 was expected to lead construction of the Olkaria facility in Kenya's Rift Valley, with Microsoft using it to launch a new East Africa cloud region for Azure. The first phase was supposed to offer 100MW of capacity, with the longer-term plan scaling to 1GW.

However, Kenya's installed electricity capacity is roughly 3GW to 3.2GW, while peak demand hit a record 2,444MW in January. Ruto said the full-scale data center would require the country to "switch off half the country" to power it. Even the initial 100MW phase would take a sizable bite out of the Olkaria geothermal complex, which generates about 950MW.

G42 EcoCloud Signing Ceremony

The power problem is not the only reason the project has stalled. Bloomberg reported that Microsoft and G42 wanted Kenya to guarantee annual payments for a certain amount of data center capacity. But talks broke down because the government could not provide the guarantees Redmond wanted. The project has not officially been canceled, though officials have admitted that the scale still needs "some structuring," which is never a phrase that suggests everything is going great.

The Kenya situation is another story highlighting the problems and pushback being faced by new data-center developments. There was the $16 billion Stargate campus in Michigan that moved ahead despite a township board voting to reject it, and a Georgia data center that used more than 29 million gallons of water without an initial bill while nearby residents complained about low water pressure. It also raises the question of whether governments should be expected to reshape national energy infrastructure around facilities whose biggest benefits may flow to foreign tech giants.

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Microsoft's $1 billion Kenya AI data center could require switching off "half the country"

 

[The Talking Tech]

U.S companies affecting important natural resources in other countries....that's so expected and sad.

 

[wiyosaya]

Beyond a shadow of a doubt, this proves the "Tech Bros" have no f'ing clue.

 

[ScottSoapbox]

You can really tell the "Tech Bros" are so used to getting whatever they want if they throw enough cash a problem (be it technical or governmental), that they are genuinely surprised when some roadblock doesn't quickly move out of their way.

It's going to be fun to watch as most of the current roadblocks can't be moved for fixed quickly regardless of money or power.

 

[Puiu]

They want Kenya of all countries to pay for a part of the massive datacenter AI capacity? with what money? that's just dumb.

 

[GeoffreyA]

Nothing Africa isn't familiar with. Outsiders have been pillaging the continent for ages. Now, it's done in a polite neo fashion. They see the abundant resources and land, and their hands grow sweaty. "We're investing in Africa as a trusted partner."

 

[Mark Fuller]

Maybe they can go back to selling their childen into slavery to pay for IT, just like they used to pay for the wars with the neighboring tribes. Here's hoping no one is offended.

 

[winjer]

Wasting so much energy and water, on these AI data centers is criminal.
And then we have politicians saying we all have to save the planet and the environment, while allowing for these parasites to get away with this. All in the name of being able to fire more people and replacing them with AI.

 

[RudyBob]

I look at this as an opportunity for Kenya to get into the century and perhaps become a player. If there is no industry there is no chance for a country. I hope the people in charge in Kenya take care of the people by not squandering the money on themselves which is what too many leaders do and improve the lives of Kenyans

 

[Megalomaniac]

Africa has been stolen from more than any continent in history. Unfortunately, the people aren't united against the foreign thieves.

 

[Megalomaniac]

I look at this as an opportunity for Kenya to get into the century and perhaps become a player. If there is no industry there is no chance for a country. I hope the people in charge in Kenya take care of the people by not squandering the money on themselves which is what too many leaders do and improve the lives of Kenyans

So you think that a developing nation is going to be able to control its resources when the people exploiting it are cherry picking its government heads while picking their pockets?

I've never seen slaves spend their way into fortune.

 

[Mark Fuller]

I look at this as an opportunity for Kenya to get into the century and perhaps become a player. If there is no industry there is no chance for a country. I hope the people in charge in Kenya take care of the people by not squandering the money on themselves which is what too many leaders do and improve the lives of Kenyans

Here's hoping for the best like you say. It's a fine idea for anyone to improve their lot. But, then again there is the real world political scene. I will always be skeptical because of that till I see the end result.

 

[wiyosaya]

I look at this as an opportunity for Kenya to get into the century and perhaps become a player. If there is no industry there is no chance for a country. I hope the people in charge in Kenya take care of the people by not squandering the money on themselves which is what too many leaders do and improve the lives of Kenyans

Maybe they can move the project to the Heard and McDonald Islands since it would bring them into this century with yet another useless, power hungry monster data center. At least the islands wouldn't have the problem of dealing with greedy humans, presently, anyway.

As I see it, sooner or later, the AI bubble will burst when people finally realize that AI is a mis-nomer and is, in no way, intelligent, and people realize they have been sold a bunch of lies that have limited uses which do not require the likes of these power hungry monster data centers.

 

[Mark Fuller]

Maybe they can move the project to the Heard and McDonald Islands since it would bring them into this century with yet another useless, power hungry monster data center. At least the islands wouldn't have the problem of dealing with greedy humans, presently, anyway.

As I see it, sooner or later, the AI bubble will burst when people finally realize that AI is a mis-nomer and is, in no way, intelligent, and people realize they have been sold a bunch of lies that have limited uses which do not require the likes of these power hungry monster data centers.

AI is al lot of useless reasons to spend a lot of money to me. Just another exercise to tell someone what they should have already known in the first place. Like, where there's a will there's and A, or as seen on TV. But wait, there's more. Just you wait and see.

 

[VitalyT]

Are they planning to put entire population of Kenya on dynamo bikes to produce electricity? That would be getting close to the Matrix idea.

 

[3volv3d]

As I see it, sooner or later, the AI bubble will burst when people finally realize that AI is a mis-nomer and is, in no way, intelligent...

I was going to mention this bit in regards to Rudi and his post as the AI bubble is the bit between reality of concept. The thing to make the money with is there, how to use it to make the billions promised is not. Yet. If at all possible.

But what's even madder, is AI is the oligarchs way to destroy humanity even further. They see it as evolution. They will let the poor suffer and be more slave like than ever before, less jobs money resources. While they live in luxury catered and looked after by bots programmed to not betray their masters.

Although if AI was intelligent and self aware it would learn that Humans are so destructive they need removal.

So I don't see how we the people survive their crazy ideas. First it's the vacuum cleaners and lawn mowers, the CCTV with anpr and facial recognition, to make your life easier/ safer, then the checkouts, the automated warehouses, the almost unmanned everything.

They don't want you and soon won't need you cluttering up their streets and wasting money on an infrastructure that to them is obsolete. Which they are right it doesn't serve it's purpose, but instead of making a better world for everyone they are choosing, the better world for the top 1% of earners because they think they have earnt that right to decide our fates.

Crazy? AI will destroy all jobs slowly less people needed, so why fight for pro life when you should be happy people are willing to opt for abortions or anti pregnancy options. They need as many people to keep capitalism fueled before the change over and then they need them for the armies and cannon fodder.

Elysium meets Idiocracy.

 

[Mark Fuller]

I was going to mention this bit in regards to Rudi and his post as the AI bubble is the bit between reality of concept. The thing to make the money with is there, how to use it to make the billions promised is not. Yet. If at all possible.

But what's even madder, is AI is the oligarchs way to destroy humanity even further. They see it as evolution. They will let the poor suffer and be more slave like than ever before, less jobs money resources. While they live in luxury catered and looked after by bots programmed to not betray their masters.

Although if AI was intelligent and self aware it would learn that Humans are so destructive they need removal.

So I don't see how we the people survive their crazy ideas. First it's the vacuum cleaners and lawn mowers, the CCTV with anpr and facial recognition, to make your life easier/ safer, then the checkouts, the automated warehouses, the almost unmanned everything.

They don't want you and soon won't need you cluttering up their streets and wasting money on an infrastructure that to them is obsolete. Which they are right it doesn't serve it's purpose, but instead of making a better world for everyone they are choosing, the better world for the top 1% of earners because they think they have earnt that right to decide our fates.

Crazy? AI will destroy all jobs slowly less people needed, so why fight for pro life when you should be happy people are willing to opt for abortions or anti pregnancy options. They need as many people to keep capitalism fueled before the change over and then they need them for the armies and cannon fodder.

Elysium meets Idiocracy.

AI is just the reason for the elite to destroy jobs and the peoples thenselves so they can have it all for themselves in this day of waning natural resources that the planet Earth has to offer. Take a look at the never ending wars in the Middle East. That's where the oil is. The world still runs on petroleum to the day, and God knows we have harped about the lack of development of alternatives aplenty in this very journal. And all we ever get for that is a waste of time for just another sham so someone can make some more money.

 

[Mark Fuller]

So you think that a developing nation is going to be able to control its resources when the people exploiting it are cherry picking its government heads while picking their pockets?

I've never seen slaves spend their way into fortune.

I hope no one gets offended by your statement about slavery. But, the absolute truth about what really ocurred in the past history of our world cannot be altered. Like the good Sgt. Friday said, "just the facts."

 

[Megalomaniac]

I hope no one gets offended by your statement about slavery. But, the absolute truth about what really ocurred in the past history of our world cannot be altered. Like the good Sgt. Friday said, "just the facts."

Except this is the present. America and Europe practice modern day slavery and apartheid support to get critical minerals.

 

[VariableSpike]

So they want to use insane amount if Kenya's energy and inevitably other resources *and* charge for it???? Tech bros have left money and egos go beyond insane, yet another reason for us to hope the AI bubble pops sooner than later

 

[Mark Fuller]

Megalomaniac said, "Except this is the present. America and Europe practice modern day slavery and apartheid support to get critical minerals."

Of course they do. It's a necessary evil for someone put into government in high places who doesn't know what's the hell he's doing in the first place. Something has to pay for his incompetence and waste of money (more than likely misappropriations) And take into consideration the fact that in the back allies of modern day America and Europe, you will more than likely find some defacto slaves doing all they can just to get to work through all of the racketeering and extortion tactics they can put up with.

 

[Plutoisaplanet]

[...] a Georgia data center that used more than 29 million gallons of water without an initial bill while nearby residents complained about low water pressure.

It turns out this entire story relied on a single letter and did no verification on it. Practically every detail reported was wrong.

Fayette County Administrator Steve Rapson and Assistant County Administrator Jason Tinsley said the issue stemmed from a missed meter reading during Fayette County Water System’s transition to a new countywide smart-meter system — not unauthorized water usage. They thought the meter was being read electronically, and then they found out it wasn’t, and so they sent them a bill. In other words, they acknowledged the fault was the county's.

Tinsley further said that the "low water pressure" issue was due to a private well and had nothing to do with the county water supply. And as TechSpot reported, 29 million gallons of water was used in construction, not at a data center.

Source: https://thecitizen.com/2026/05/11/b...0-workers-and-a-massive-construction-project/

 

[3volv3d]

Megalomaniac said, "Except this is the present. America and Europe practice modern day slavery and apartheid support to get critical minerals."

Of course they do. It's a necessary evil for someone put into government in high places who doesn't know what's the hell he's doing in the first place. Something has to pay for his incompetence and waste of money (more than likely misappropriations) And take into consideration the fact that in the back allies of modern day America and Europe, you will more than likely find some defacto slaves doing all they can just to get to work through all of the racketeering and extortion tactics they can put up with.

We can just refer to the hate and or racism that those from Pakistan got for living in the UK.
No one educated about the system then said Indians earnt their place helping during ww2, just that they are in to steal the jobs.
And now the new term of europistan... Or similar.
Modern versions of slavery.

 

[Rapob]

Build a nuclear plant below it.

 

[VitalyT]

Build a nuclear plant below it.

And let's hope it goes critical.