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Microsoft and G42 announced a $1 billion digital-ecosystem initiative on May 22, 2024, centered on a planned, geothermal-powered data-center campus at Olkaria and a new East Africa Microsoft Azure cloud region. As of September 27, 2026, the project is best described as delayed and uncertain: reports cite power-capacity and approval problems, while Kenya’s special technology envoy says it has not been suspended. There is no verified evidence in the available record that the facility is operating.
What Microsoft and G42 announced
G42 said it would work with Microsoft and Kenyan partners to design and build a state-of-the-art campus in Olkaria. The broader package was presented as a $1 billion comprehensive digital ecosystem initiative, not simply a construction budget for one finished building.
The campus was intended to provide local access to Microsoft Azure through a new East Africa Cloud Region. Kenya News Agency reported that the cloud region was expected to become operational within 24 months after definitive agreements were signed; that was a conditional target, not a guaranteed date from the initial announcement.
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The Office of the President of Kenya described the related EcoCloud-G42 concept as a 1GW geothermal-powered mega data center. The announcement framed the investment as hyperscale cloud and artificial-intelligence infrastructure that could support Kenya’s digital economy and wider East African workloads.
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Why Olkaria and geothermal power?
Olkaria’s geothermal setting
Olkaria lies in Kenya’s geothermal-rich Rift Valley. Locating a large computing campus there was meant to place it close to a source of renewable geothermal generation rather than rely solely on conventional fossil-fuel power.
Water-conservation design
G42’s announcement also promised water-conservation technology. That is a design objective, not proof that the campus has been built, commissioned or demonstrated to operate with a particular water-use performance.
What geothermal does not settle
Geothermal generation at or near Olkaria would not by itself resolve transmission connections, total available generation, construction approvals, financing and payment guarantees, or the need for resilient backup and distribution infrastructure. Those issues became central to the project’s later uncertainty.
How big was the proposed facility?
| Figure | What it describes | How to interpret it |
|---|---|---|
| $1 billion | The Microsoft-G42 digital-ecosystem initiative announced in 2024 | An announced investment value; it is not the same measure as electrical capacity. |
| Up to 1GW | Potential future data-center capacity reported by Kenya News Agency and the Kenyan presidency | A build-out ambition, not installed or operating capacity. |
| Approximately 3,000MW | Kenya’s installed electricity capacity, according to Special Tech Envoy Philip Thigo in 2026 | The envoy said this was insufficient for the proposed facility without expanded generation. |
A gigawatt is a measure of power demand or facility capacity; it is not a dollar amount. The announcement therefore described a $1 billion initiative that could eventually reach up to 1GW, rather than saying the project already had 1GW of live computing capacity.
What was the original timeline?
- May 22, 2024: G42 announced the Microsoft partnership, the Olkaria campus, renewable geothermal power, water-conservation technology and the proposed East Africa Azure region.
- Within 24 months of definitive agreements: Kenya News Agency said the cloud region was planned to become operational. This condition matters because the initial announcement was a letter-of-intent stage rather than evidence of a completed final deal.
- May 2026: The expected online target was missed, according to reporting by Semafor and Data Center Dynamics.
- August 2025 assessment: Data Center Dynamics reported that officials had already determined the May 2026 launch date would not be met.
Is the Microsoft-G42 Kenya data center still being built?
The most defensible answer is not confirmed as operating, and its continuation is disputed. Semafor reported in May 2026 that the project was unlikely to proceed as planned after President William Ruto cited inadequate power capacity. Data Center Dynamics likewise reported that the project had stalled over power capacity and that a concept note submitted to Kenya’s National Treasury had not received clearance.
Kenya’s Special Tech Envoy Philip Thigo rejected descriptions that the initiative had been suspended. He said it remained active while acknowledging that Kenya’s roughly 3,000MW installed capacity could not support the proposed facility without additional generation. These statements allow the project to be described as delayed and uncertain, but not as completed or definitively canceled.
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Planned proposal versus current evidence
| Issue | 2024 proposal | Evidence available by September 27, 2026 |
|---|---|---|
| Capacity | Up to 1GW in a future build-out | No verified operating 1GW facility |
| Energy model | Entirely renewable geothermal power, with water-conservation technology | Power availability and expanded generation remain unresolved |
| Cloud service | A new East Africa Microsoft Azure region | The planned launch target was missed; operation is not verified |
| Schedule | Operational within 24 months of definitive agreements | The expected May 2026 target was missed |
| Project status | Letter-of-intent and investment announcement | Independent reports describe a stall; a Kenyan envoy says the initiative remains active |
| Economic rationale | Regional cloud and AI infrastructure, connectivity and digital-economy investment | Power, approvals and commercial arrangements still have to be resolved |
Why power capacity became the key obstacle
A data center advertised at up to 1GW would be an exceptionally large electricity load relative to Kenya’s installed generation. Even with geothermal resources in Olkaria, the project would require enough generation, transmission, substations and dependable commercial supply to serve a hyperscale campus. Thigo’s comparison with Kenya’s approximately 3,000MW installed capacity explains why officials treated additional generation as necessary rather than assuming the geothermal location solved the problem.
Data Center Dynamics also reported a separate institutional hurdle: a concept note submitted to Kenya’s National Treasury did not receive clearance. Power supply and government approval are therefore distinct dependencies; solving one would not automatically complete the other.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What Microsoft and G42 said about wider connectivity
G42’s announcement said Microsoft would continue expanding last-mile wireless internet access to 20 million people in Kenya and 50 million people across East Africa by the end of 2025. Those were commitments reported in the 2024 announcement. The available evidence does not establish that either target was achieved, so they should not be treated as completed results.
What the project would mean if it proceeds
- Lower-latency Azure access: A regional cloud location could reduce the need to send workloads to facilities outside East Africa, subject to the region actually becoming operational.
- AI infrastructure: The proposed scale was aimed at demanding cloud and AI workloads, rather than a small enterprise server room.
- Geothermal-centered design: The plan linked digital infrastructure to Kenya’s domestic renewable-energy resources and water-efficiency goals.
- Regional connectivity: The initiative bundled data-center ambitions with last-mile internet expansion, so the wireless targets were a separate but related part of the package.
Bottom line on the Kenya data-center announcement
Microsoft and G42 did announce a $1 billion Kenya initiative in 2024, with a planned Olkaria campus, geothermal power, water-conservation technology and an East Africa Azure region. The frequently quoted 1GW figure is the campus’s possible future capacity, not capacity known to be online. By September 2026, missed deadlines, inadequate available power and an uncleared Treasury concept note pointed to a stalled or heavily delayed project, while Kenya’s technology envoy maintained that the initiative remained active. The accurate status is therefore planned, delayed and uncertain—not operational and not definitively canceled.
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