Microsoft and G42 to Invest $1 Billion to Develop Data Center Infrastructure in Kenya

Microsoft and G42 have announced a comprehensive package of digital investments in Kenya. Microsoft Azure will manage a cutting-edge data center in Kenya that G42 and its partners will build in a brand-new East Africa Cloud Region. In collaboration with Microsoft and other stakeholders, G42 will arrange an initial investment of USD 1 billion for the components outlined in the comprehensive package. 

The investment initiative will include four additional pillars that will be pursued with local partners:

1.  local-language AI model development and research
2. an East Africa Innovation Lab coupled with broad AI digital skills training
3. international and local connectivity investments
4. collaboration with the government of Kenya to support safe and secure data centers in Kenya.

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A letter of intent formalizing the relationship will be signed on Friday. The letter of intent will be signed between Microsoft, G42, and Kenya’s Ministry of Information, Communications, and the Digital Economy. 

Peng Xiao, group chief executive officer of G42, said, “In partnership with Microsoft, we are excited to work with the Kenyan government to usher in a transformative era for the digital ecosystem in Kenya and the region. By establishing a green data center and developing AI tailored to the local culture, G42 is committed to fostering sustainable technological growth.”

The New East Africa Cloud Region

G42, in collaboration with local partners, will design and build a state-of-the-art data center in Olkaria, Kenya, that will utilize renewable geothermal energy for its operations. The data center will have state-of-the-art water conservation technology. 

The data center will run on and provide access to Microsoft Azure through a new East Africa Cloud Region, which will become operational within 24 months of signing the definitive agreements.

This cloud region will provide customers access to scalable, secure, high-speed cloud and AI services to accelerate cloud adoption and the digital transformation of businesses, customers, and partners across Kenya and East Africa.

Microsoft and G42 will work with the government of Kenya and will design and operate the new East Africa cloud region as part of a “trusted data zone” based on global standards to protect digital safety, privacy and security. 

Kenya will establish the new data center as part of a "trusted data zone" with technical assistance and support from G42 and Microsoft, allowing data from other countries to be subject to their local laws even while stored and residing in Kenya. Additionally, Kenya will utilize the new data center infrastructure and cloud services for government and citizen services.

Read: Microsoft Launches the First Hyper-scale Data Center Region in Mexico

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