Microsoft and UAE-based AI firm G42 have delayed a $1 billion geothermal-powered data center in Kenya. The project is a key component of Microsoft's plan to expand Azure cloud services in East Africa.
Negotiations stalled after the Kenyan government declined to provide requested annual payment guarantees. These guarantees were meant to secure a minimum amount of computing capacity.
Kenyan officials state that discussions are ongoing and the project has not been withdrawn. The government is currently reviewing the scale and power requirements of the facility.
The project may be scaled back if the financial guarantees do not materialize. Reports also cite Kenya's insufficient power capacity as a major obstacle to the $1 billion development.