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$1 Billion – Microsoft and G42 Investment for Kenya Digital Ecosystem Initiative

Largest single private-sector digital investment in Kenya’s history will support economic development across East Africa

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CEO Peng Xiao of G42, Secretary Musalia Mudavadi of Kenya, and Microsoft Vice Chair Brad Smith sign an initial investment of $1 billion for a comprehensive digital ecosystem in Kenya
CEO Peng Xiao of G42, Secretary Musalia Mudavadi of Kenya, and Microsoft Vice Chair Brad Smith sign an initial investment of $1 billion for a comprehensive digital ecosystem in Kenya

Microsoft and G42 announce $1 billion comprehensive digital ecosystem initiative for Kenya in collaboration with the Republic of Kenya’s Ministry of Information, Communications, and the Digital Economy.

This marks the largest single private-sector digital investment in Kenya’s history, aimed at transforming the country’s digital landscape and supporting economic development across East Africa.

Green Data Center: A state-of-the-art data center will be built in Olkaria, Kenya, powered entirely by renewable geothermal energy. This facility will run Microsoft Azure in the new East Africa Cloud Region, expected to be operational within 24 months.

Four Key Pillars:

  1. Local-Language AI Model Development: Creation of AI models in Swahili and English to support Kenya’s cultural and linguistic needs.
  2. East Africa Innovation Lab: Establishment of a lab in Nairobi to foster startups and entrepreneurs, coupled with broad AI digital skills training.
  3. Connectivity Investments: Enhancements in both international and local connectivity, including marine and terrestrial fiber cable infrastructure and last-mile wireless Internet access.
  4. Secure Cloud Services: Collaboration with the Kenyan government to ensure safe and secure cloud services across East Africa.

The initiative is part of a broader effort to bridge the digital divide and accelerate technological innovation in the Global South. It also underscores the strategic importance of Kenya as a key partner for the U.S. in the region.

What they’re saying:

  • William Samoei Ruto, President of Kenya: “This partnership transcends technology itself. It embodies the convergence of three nations, sharing a collective vision of a technologically empowered nation.”
  • Brad Smith, Vice Chair and President of Microsoft: “This represents the single largest and broadest digital investment in Kenya’s history and reflects our confidence in the country, the government, its people, and the future of East Africa.”
  • Peng Xiao, CEO of G42: “By establishing a green data center and developing AI tailored to the local culture, G42 is committed to fostering sustainable technological growth.”

 A letter of intent formalizing the relationship was signed during President Ruto’s state visit to the U.S. on Friday, the first by a sitting African head of state in nearly two decades. This agreement, crafted with the assistance of the U.S. and UAE governments, sets the stage for a digitally empowered future for Kenya and the broader East African region.

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