Kenya Says Microsoft’s $1 Billion AI Datacenter Will Consume Half The Country’s Electricity

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Kenya has asked Microsoft to reconsider its plans for a $1 billion AI data center. Government officials are concerned the facility could use so much electricity that it might cause a major energy shortage, potentially requiring power to be cut off to a large portion of the country to keep it operational.

This new AI data center is a significant development for Microsoft. Built in partnership with G42, an AI company based in Abu Dhabi, it will expand Azure cloud and AI services to East Africa. The facility will uniquely be powered by geothermal energy from Kenya’s Rift Valley.

A recent Bloomberg report indicates the project originally aimed for around 1,000 megawatts (MW) of power, with an ultimate goal of 1 gigawatt (GW). Current projections, however, suggest it could initially reach approximately 2,444MW and then expand further.

There’s a problem with the projected energy use of this new data center in Kenya. Officials worry it could use a huge amount of the country’s electricity, potentially straining the power grid. Because of this, development of the project has been paused while they explore alternative energy plans and backup systems.

Many countries developing artificial intelligence face a similar challenge: few have the infrastructure to support large AI datacenters. While these advancements are welcome, the massive energy consumption they require is a significant concern and may not be sustainable.

Artificial intelligence needs a lot of electricity, and large AI data centers can’t be built in areas without a reliable power supply.

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2026-05-19 10:14