Microsoft and G42 reveal $1bn plan to transform Kenya into a digital hub

Microsoft Corp. the US global tech giant, and G42, a data company based in the United Arab Emirates, announced a comprehensive package of digital investments in Kenya. The announcement is part of an initiative with the Kenya’s Ministry of Information, Communications and the Digital Economy.

In collaboration with Microsoft and other stakeholders, G42 will lead the arrangement of an initial investment of $1 billion for the various components outlined in the comprehensive package. One of the Kenyan investment priorities is a state-of-the-art green data center that will be built by G42 and its partners to run Microsoft Azure in a new East Africa Cloud Region.

The 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; and

(4) collaboration with the government of Kenya to support safe and secure cloud services across East Africa.

A letter of intent formalizing the relationship will be signed on Friday as part of President William Ruto’s state visit to the United States of America, the first state visit to Washington, D.C., by a sitting African head of state in nearly two decades. The letter of intent will be signed between Microsoft, G42 and Kenya’s Ministry of Information, Communications and the Digital Economy, and was crafted with the assistance of the governments of the United States and the United Arab Emirates.

Sustainable data center infrastructure

As part of the agreement, G42, in collaboration with local partners, will design and build a state-of-the-art data center campus in Olkaria, Kenya, run entirely on renewable geothermal energy and designed with 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 the signing of 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.

His Excellency, President, Dr. William Samoei Ruto, stated that, “This partnership is bigger than technology itself. It is about coming together of three countries with a common vision of a nation empowered by technology, where every citizen has the opportunity to thrive in the global digital landscape. It’s about building a future where Kenya flourishes as a digital leader.”

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. This initiative will empower the Kenyan government and communities with robust, secure cloud services and AI capabilities, providing the foundation for a thriving digital economy across the region.”

Development of Swahili/English AI models

To support national economic growth and development and support Kenya’s unique cultural and linguistic needs, G42 has begun work through its data infrastructure in the United States to train an open-source large language AI model in Swahili and English. To build on this and help accelerate advanced research in Kenya, Microsoft and G42 will increase their combined collaboration and support for local universities, through the Microsoft Africa Research Institute, the Microsoft AI for Good Lab, the Mohammed Bin Zayed University of Artificial Intelligence in Abu Dhabi, and select universities from Kenya and East Africa.

In addition, collaborating with the Kenya Red Cross Society, Kenya Space Agency and National Disaster Management Unit, the AI for Good Lab will work to improve climate resilience by applying AI models to high-resolution satellite data for both disaster preparedness and disaster response.

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