Microsoft Data Center Threatens Kenya's Water

A planned $1 billion Microsoft-G42 data center in Olkaria, Kenya, faced a setback in May 2026 when its progress stalled. The project, announced in 2024 as part of a significant digital investment, was slated to utilize geothermal energy. However, concerns over available power capacity have halted its advancement.

This uncertainty has amplified local anxieties regarding the data center's potential water consumption. Communities surrounding Lake Naivasha already grapple with daily water scarcity, relying on vendors and facing long distances for livestock. Residents report a decline in reliable piped water supplies.

Microsoft and G42 stated the facility would operate on renewable geothermal power and incorporate water conservation technologies. Despite these assurances, specific water consumption figures were not disclosed. The project's chosen location, Olkaria, is Kenya's primary geothermal hub, making it attractive for energy-intensive industries.

Environmental advocates and local leaders express concern over adding another significant water user to a region already under pressure from population growth, agriculture, and climate variability. Past fluctuations in Lake Naivasha's levels serve as a stark warning of potential over-abstraction.

Kenya faces a national water scarcity issue, with per capita freshwater availability below critical thresholds and projected to decline further. The proposed data center's water demand, though unspecified, adds to the scrutiny in an area where water resources are already strained. Regulatory bodies like the Water Resources Authority and NEMA are responsible for managing such demands, but officials were unavailable for comment.