Kenya has refuted claims that the $1 billion data center project involving Microsoft and G42 has hit a standstill. Special Tech Envoy Ambassador Philip Thigo clarified that the government remains fully dedicated to the initiative, addressing recent jitters regarding the country’s electricity capacity.
In a statement, Thigo explained that the public had misinterpreted President William Ruto’s recent comments. He noted that the president intended to highlight the necessity of scaling up power generation to accommodate massive digital infrastructure, rather than suggesting a halt to the project.
“His point has not been that the project was suspended, but Kenya must confront the scale of energy required to support next-generation digital infrastructure,” Thigo stated.
This clarification addresses several media reports that suggested the deal had stalled following the president’s remarks about Kenya’s power limitations. Originally announced during President Ruto’s state visit to Washington in May 2024, the project carries significant weight for the region. Once operational, the facility will utilize Microsoft’s Azure platform to boost cloud computing and artificial intelligence capabilities throughout East Africa.
Kenya currently operates with an installed electricity capacity of approximately 3,000 megawatts, a figure that falls short of the massive energy demands required to power large-scale AI data centers. To bridge this gap, Ambassador Thigo confirmed that the government has launched an ambitious expansion program. This roadmap targets a generation capacity of at least 10,000 megawatts to ensure the nation’s infrastructure can handle the next wave of technological investment.
“President Ruto’s message was clear: While the energy demands of next-generation technologies are significant, Kenya is committed to scaling up our power capacity to at least 10,000 megawatts by 2030. This will ensure projects like the Microsoft-G42 data centre can thrive,” Thigo explained.
He further clarified the administration’s stance, noting, “His point has not been that the project was suspended, but Kenya must confront the scale of energy required to support next-generation digital infrastructure.”
Despite the current energy hurdles, Thigo maintained that Kenya’s goal to become a regional powerhouse for artificial intelligence and digital infrastructure remains firm. He pointed to the country’s vast renewable energy resources, particularly its geothermal potential and a rapidly expanding digital economy, as the primary drivers that will sustain these high-tech ambitions.
Thigo added that infrastructure development will serve as a cornerstone of the upcoming Africa Forward Summit. At this forum, officials expect to announce several regional data center investments across the continent, including new ventures in Kenya.
“As we push forward with digital transformation, addressing power infrastructure is paramount,” Thigo said. “Kenya is positioned to lead in emerging technologies while building a sustainable energy future.”
President Ruto has consistently framed the expansion of Kenya’s energy base as an urgent necessity for industrialization and long-term economic growth. During a talk with the Kenyan diaspora in Qatar on November 5, 2025, he warned that without significant upgrades, the country might face regular power rationing during peak hours just to keep the data center running.
“When I went on a trip to the United States, we signed an agreement between G42 of the UAE, Microsoft of America and Kenya to establish data centres,” Ruto said.
He humorously recounted that the enthusiasm quickly met reality when experts outlined the energy demands of the proposed hyperscale data centers.
“Tulikuja na kimbelembele yetu tukaanza kazi kuuliza tukaambiwa one data centre requires 1,000 megawatts. Yet, as a whole country, we only have 2,300 megawatts,” he said to laughter from the audience.
Jokingly, the president added that to power a single facility, “we would have to shut down the whole country.”
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