BBS:      TELESC.NET.BR
Assunto:  MS's Kenya data center project
De:       Mike Powell
Data:     Sun, 17 May 2026 08:23:38 -0500
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Microsoft's $1 billion Kenya AI data center project hits a major hurdle as 
the government says it would require switching off 'half the country' to meet 
power needs

Date:
Sun, 17 May 2026 01:05:00 +0000

Description:
Microsoft and G42 data center plans in Kenya face power capacity constraints 
as the national grid struggles with electricity demand requirements

FULL STORY
A proposed Microsoft 1-gigawatt data center in
Kenya would demand so much electricity that the nation simply cannot supply 
that power. 

Microsoft and Abu Dhabi-based G42 announced the project in May 2024 during 
President Rutos official visit to Washington DC, promising a 
geothermal-powered cloud region in the Olkaria area of Kenyas Rift Valley 
region. However Kenyan President William Ruto recently told a Nairobi 
audience that running this facility would force a terrible national choice. 

Kenya goes dark if the data center comes up -- "We would need to switch off
half the country for the data center to be powered," President Ruto said.

The stark reality is that Kenya lacks enough spare megawatts for this 
ambitious technology project; its entire power grid cannot even handle the 
facilitys enormous electricity appetite. 

Kenyas total national installed capacity sits between 3,000 and 3,200 
megawatts from all sources combined. 

Its peak electricity demand already reached 2,444 megawatts in January 2025, 
during regular daily usage across the country, meaning a full 1-gigawatt data 
center would consume roughly one-third of the nations total power supply.
    
Even the first 100-megawatt phase would drain a significant share from the 
Olkaria geothermal complex, which currently produces only 950 megawatts 
across all its individual power plants working together. 

No extra capacity exists for such a massive new electricity user anywhere on 
the Kenyan grid. No solution in sight John Tanui, principal secretary at 
Kenya's Ministry of Information, told Bloomberg that the project has not been 
formally withdrawn from consideration yet.

He claims both parties are still discussing the project, because the scale of 
the data center they wanted to do still requires some structuring. 

The Kenyan government will not shut off half the country for any single 
private facility operating within its borders. 

Microsoft refuses to accept less power than its original billion-dollar plan 
demanded for that specific location. 

A separate 60-megawatt project with local developer EcoCloud remains under 
active discussion right now as a smaller alternative, but the main 
billion-dollar Olkaria proposal is stalled over capacity disagreements and 
missing electrical infrastructure across Kenya. 

Microsoft spent $1.5 billion on G42 in 2024 after G42 agreed to remove Huawei 
equipment under American pressure. 

Microsoft president, Brad Smith, called the Kenya project the single biggest 
step forward for digital technology in the country's history - however, a 
step that demands a third of a nation's electricity may not be a real step 
forward for Kenyan citizens. 

A data center cannot be called progressive if it requires every other user to 
switch off their lights. 

Nearly half of the US data center builds this year have been delayed or 
cancelled due to power shortages - and if Western economies are cancelling 
data centers due to power shortages, Africa, with its growing infrastructure 
needs, is likely not a region for power-hungry data center projects.

Link to news story:
https://www.techradar.com/pro/microsofts-usd1-billion-kenya-ai-data-center-pro
ject-hits-a-major-hurdle-as-the-government-says-it-would-require-switching-off
-half-the-country-to-meet-power-needs

$$
--- MultiMail/DOS
 * Origin: Capitol City Hub (1:2320/105)

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