Brad Smith Vice Chair and President at Microsoft | Official website
On May 22, 2024, Microsoft Corp. and G42 announced a significant digital investment initiative in Kenya, marking the largest private-sector digital investment in the country's history. This collaboration involves an initial $1 billion investment, facilitated by G42 with support from various stakeholders, aimed at bolstering economic development across East Africa.
A key component of this initiative is the construction of a state-of-the-art green data center by G42 and its partners to host Microsoft Azure in a new East Africa Cloud Region. The comprehensive package includes four additional pillars: local-language AI model development and research; an East Africa Innovation Lab paired with extensive AI digital skills training; investments in international and local connectivity; and cooperation with the Kenyan government to ensure secure cloud services across East Africa.
The formalization of this relationship will occur through a letter of intent signed during Kenyan President William Ruto’s state visit to Washington, D.C., marking the first such visit by an African head of state in nearly two decades. The letter will be signed between Microsoft, G42, and Kenya’s Ministry of Information, Communications and the Digital Economy.
As part of the agreement, G42 will design and build a data center campus in Olkaria, Kenya. This facility will operate entirely on renewable geothermal energy and incorporate advanced water conservation technology. The new cloud region aims to provide scalable, secure cloud and AI services to accelerate digital transformation across Kenya and East Africa within 24 months of signing definitive agreements.
President William Ruto remarked that this partnership transcends technology: “It is about coming together of three countries with a common vision... building a future where Kenya flourishes as a digital leader.” He emphasized that the letter of intent symbolizes mutual growth towards "a brighter, more connected and digitally empowered future."
Brad Smith, vice chair and president of Microsoft, highlighted the significance of this venture: “This represents the single largest and broadest digital investment in Kenya’s history,” reflecting confidence in Kenya's potential. Peng Xiao, CEO of G42, expressed excitement about working with Microsoft to usher in transformative technological growth for Kenya.
In addition to infrastructure developments, G42 has initiated work on an open-source large language AI model trained in Swahili and English. Collaboration with local universities through entities like the Microsoft Africa Research Institute aims to foster advanced research capabilities.
Microsoft’s AI for Good Lab will address economic priorities such as enhancing food security through AI-driven agricultural recommendations while supporting environmental initiatives like monitoring water risks using satellite data.
An East African Innovation Lab will be established in Nairobi to assist startups and entrepreneurs in developing cloud-based solutions. The lab will offer skilling programs including cybersecurity training for over 2,000 individuals annually.
Kenya’s Ministry of Information plans to expand internet connectivity through collaborations with Microsoft and G42. This includes extending wireless internet access to millions across East Africa by 2025.
Finally, both companies will work alongside the Kenyan government to establish a "trusted data zone" ensuring global standards for digital safety while promoting rapid digital transformation even before completing local infrastructure projects.
