Microsoft and UAE-based AI firm G42 announced a $1 billion investment to establish a data center in Kenya on Wednesday. This initiative aims to bolster cloud-computing services across East Africa. 

G42 and its partners will construct the data center, which will utilize geothermal energy. The data center will offer access to Microsoft’s Azure services through a new cloud region specifically for East Africa.

The partnership underscores a significant expansion of cloud infrastructure in the region. Abu Dhabi-based G42, which recently received a $1.5 billion investment from Microsoft, is also developing an open-source large-language AI model in Swahili and English. 

This model is expected to enhance local language processing capabilities, addressing a critical need in the region’s AI development.

The investment is part of a broader trend among major tech companies such as Amazon, Microsoft, and Alphabet, pouring billions into new data centers worldwide. 

The increasing demand for cloud services and generative AI technologies drives these efforts. Establishing a robust cloud infrastructure is essential for supporting various digital transformation initiatives and meeting the growing needs of businesses and governments.

Representatives from Microsoft, G42, and Kenya’s Ministry of Information, Communications, and the Digital Economy will sign a letter of intent regarding the project on Friday. This signing will coincide with Kenyan President William Ruto’s state visit to the United States.

Microsoft has indicated that the data center will become operational within two years of finalizing the definitive agreements. This timeline suggests a rapid development phase aimed at quickly scaling up the region’s cloud computing capabilities.