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Kenya Data Center Deal Hits Snag Over Payments
10 May
Summary
- Microsoft and G42 seek guaranteed annual payments from Kenya.
- Talks stalled as Kenya could not meet Microsoft's guarantee levels.
- The project's future scale is under discussion by the government.
A proposed $1 billion Microsoft and G42 data center in Kenya, announced in May 2024 during President William Ruto's visit to Washington, is facing delays. Disagreements have emerged between the technology partners and the Kenyan government regarding guaranteed payment structures.
Microsoft and G42 sought annual commitments for a certain capacity, but the Kenyan government's inability to meet the requested guarantee levels has stalled negotiations. This has led to discussions about potentially scaling back the project.
However, Kenyan officials state the talks are ongoing and the project is not abandoned. The scale of the data center and its power needs are still being discussed, indicating that a resolution may still be reached. Microsoft and G42 have not yet commented on the reported issues.
