Microsoft's Kenya data center project delayed by disagreement with government over payment guarantees, Bloomberg News reports

In May 2024, Microsoft and UAE-based AI firm G42 partnered to invest $1 billion in a data center in Kenya. Microsoft and G42 requested that the Kenyan government commit to paying for a certain amount of capacity annually, but negotiations broke down when the government could not provide the guarantees at the level Microsoft requested.

The facility was designed to run entirely on geothermal power and provide access to Microsoft's Azure cloud services through a cloud region for East Africa.

Kenya's Ministry of Information stated the project is not failed or withdrawn, though the scale of the data center requires further structuring and power requirements remain under discussion.