Microsoft-G42’s $1 Billion Kenya Data Centre Project Stalls Amid Offtake Disagreement

Published on May 11, 2026

Microsoft’s ambitious $1 billion data centre initiative in Kenya, in collaboration with UAE-based G42, faced hurdles as discussions with the Kenyan government hit a standstill. The project promised to elevate the country’s tech infrastructure and provide enhanced cloud services.

Conflicts arose when Microsoft sought a guaranteed annual capacity offtake from the government, a demand that the latter did not meet. Without a commitment at the requested level, negotiations between Microsoft and the Kenyan officials have broken down.

As a result, the project is now at an impasse but has not been officially canceled. Both parties have indicated willingness to find a resolution, though the timeline for progress remains uncertain.

The stalling of this project could have significant repercussions for Kenya’s digital landscape, potentially delaying advancements in local tech capabilities and hindering economic growth opportunities linked to cloud technology.

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