NAIROBI, Kenya — Kenya’s Special Tech Envoy, Amb Philip Thigo has dismissed reports claiming Kenya suspended the planned Sh129 billion Microsoft-G42 data centre project, insisting the initiative remains firmly on track despite concerns over the country’s electricity capacity.
Thigo said recent remarks by William Ruto regarding Kenya’s power generation challenges had been misinterpreted as a sign that the project had been halted.
According to the Special Tech Envoy, the President was instead highlighting the urgent need to expand electricity generation to support large-scale digital infrastructure projects.
The proposed data centre project involving Microsoft and G42 was announced during President Ruto’s state visit to the United States in May 2024 and is considered a key component of Kenya’s strategy to become East Africa’s leading hub for cloud computing, artificial intelligence, and advanced digital services.
President Ruto had earlier noted that Kenya’s current installed electricity capacity of approximately 3,000 megawatts would not be sufficient to power such a large facility without placing pressure on the national grid.
Thigo said the government remains committed to increasing the country’s generation capacity to at least 10,000 megawatts by 2030 to support future digital investments and industrial expansion.
Kenya’s renewable energy portfolio, particularly geothermal energy, continues to position the country as an attractive destination for global technology companies seeking sustainable power sources for energy-intensive data centres.
Geothermal power currently contributes a significant share of Kenya’s electricity supply and has become a major selling point in attracting hyperscale technology infrastructure.
The clarification comes amid intensifying competition among African countries to attract large-scale data centres and AI infrastructure as demand for cloud services rapidly expands across the continent.
Thigo maintained that the government’s focus is now centred on building resilient energy systems capable of sustaining long-term digital transformation and economic growth.
The issue is expected to feature prominently at the upcoming Africa Forward Summit 2026 in Nairobi later this month, where policymakers and technology leaders will discuss artificial intelligence, energy resilience, and Africa’s digital infrastructure ambitions.
Analysts say reliable electricity supply remains one of the biggest challenges facing Africa’s push to establish itself as a major global technology and AI destination.
Data centres, which require massive and uninterrupted energy supply, are increasingly viewed as critical infrastructure for powering AI ecosystems, cloud computing, and digital economies.
