Overview
- Talks over the $1 billion Olkaria data center have stalled after Kenya declined Microsoft’s request for guaranteed yearly capacity payments to run Azure services.
- President William Ruto warned the facility’s power draw could force the country to “switch off half the country,” underscoring a grid with about 3,000–3,200 MW installed and a 2,444 MW peak.
- The project was unveiled in 2024 as a geothermal site starting at roughly 100 MW with a long-term goal of 1 GW, a size that would consume a major share of Kenya’s available generation.
- Principal secretary John Tanui said the plan is not withdrawn and negotiations now center on restructuring, with a smaller build under review and a separate 60 MW EcoCloud site still in discussion.
- The outcome could set a template for how African nations, which host about 1% of global data-center capacity, secure cloud investment without straining power needed by homes and businesses.