Microsoft and G42 announced the project in May 2024, but it was not a completed or operating data center. The proposed campus was to be built at Olkaria, Kenya, as one part of a broader $1 billion digital-ecosystem initiative. Semafor reported on May 6, 2026, that the project was unlikely to proceed because of power-capacity concerns and that developers had not broken ground. That report did not establish a formal cancellation, redesign, restart, or launch of the planned cloud region.
What Microsoft and G42 announced
On May 22, 2024, Microsoft, G42 and Kenya’s Ministry of Information, Communications and the Digital Economy announced a comprehensive investment package. Microsoft said G42 would lead arrangement of an initial $1 billion investment across the package; the announcement did not say that the entire amount was exclusively a construction budget for the data center.
The data-center component was a planned “green data center” to be built by G42 and partners. It was intended to run Microsoft Azure in a new East Africa Cloud Region, serving customers in Kenya and elsewhere in East Africa with cloud and AI services.
Where was the proposed data center?
The proposed campus was to be located in Olkaria, Kenya, a geothermal area. The design described in Microsoft’s announcement called for operation entirely on renewable geothermal energy and included water-conservation technology. Those were announced design intentions, not independently verified operating characteristics.
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How large was it supposed to be?
G42’s separate EcoCloud announcement described the proposed mega-data-center as having an initial capacity of 100 MW, with potential to reach 1 GW. Both figures are planned capacities attributed to G42; they are not evidence of installed, operating or completed capacity.
| Item | Announced plan | What is established now |
|---|---|---|
| Investment | $1 billion initial investment for the wider digital-ecosystem package | Not confirmed as spent; the amount was not stated as a data-center-only budget |
| Site | Olkaria, Kenya | Proposed location |
| Platform | Microsoft Azure and a new East Africa Cloud Region | No confirmed regional launch |
| Capacity | 100 MW initially, with potential for 1 GW | Prospective G42 figures, not verified operating capacity |
| Energy and water | Renewable geothermal power and water-conservation technology | Design intentions announced in 2024 |
| Schedule | Operational within 24 months after definitive agreements | Original target, not an achieved launch date |
What else was included in the $1 billion initiative?
Microsoft presented the data center as one element of a wider digital ecosystem rather than a standalone construction deal. The other announced pillars were:
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- Research and development for local-language AI models, including Swahili and English work.
- An East Africa Innovation Lab with AI skills training, university collaboration and startup support.
- Investment in international and local connectivity.
- Cooperation with Kenya on safe and secure cloud services.
President William Samoei Ruto said the partnership was “bigger than technology itself” and described a shared goal of enabling citizens to participate in the global digital landscape. Microsoft vice chair and president Brad Smith called it an opportunity to bring digital technology to the Global South “in a safe and secure manner.” G42 CEO Peng Xiao said the companies would work with the Kenyan government on a “transformative era for the digital ecosystem.”
Is the Microsoft-G42 data center being built?
The latest status in the supplied reporting is uncertain and negative, but not a formal cancellation. On May 6, 2026, Semafor reported that the project was unlikely to go ahead, that developers had not broken ground and that the government had not approved a concept note presented to unlock funding.
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1Clear out junk files and repair common Windows errors2Fix the driver behind crashes, sound loss and screen glitches3Repair Windows errors before they cause bigger problemsSemafor attributed the delay to concerns about whether Kenya could supply enough electricity. President William Ruto said, as quoted by Semafor, “To switch on that one data center, we would need to shut off power for half the country,” followed by, “That’s when I knew there was a problem.” The same account cited Kenya’s then-total installed generation capacity at around 3,000 MW and reported Ruto’s view that the proposed center’s demand could equal roughly one-third of it. Those are reported remarks and context, not an independently verified technical assessment in the available material.
Why did the project stall if it was geothermal?
Geothermal operation addresses the planned source and sustainability profile of the facility; it does not by itself answer whether sufficient generation, transmission and available capacity could be committed to a very large new load. The 2024 announcement emphasized renewable geothermal power, while the 2026 reporting raised the separate question of Kenya’s overall ability to supply the project.
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Accordingly, the evidence supports a stalled or doubtful project, not a conclusion that geothermal power was abandoned or that it would have solved every grid constraint. The reviewed sources do not confirm whether the initiative was formally cancelled, redesigned, resumed or replaced.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What was the original launch promise?
Microsoft said the East Africa Cloud Region could become operational within 24 months after definitive agreements were signed. That was a target stated in 2024. It should not be read as proof that agreements were completed, construction finished or Azure services launched in the region.
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What readers can conclude
- The project was announced, not documented as an operating data center.
- Olkaria was the proposed site, with geothermal energy and water conservation in the design.
- The $1 billion figure covered a multi-part Kenya digital initiative; it was not identified as a data-center-only budget.
- G42’s 100 MW and possible 1 GW figures were planned capacity claims.
- May 2026 reporting linked the lack of progress to power-capacity concerns, while leaving the project’s formal disposition unresolved.
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