Microsoft is partnering with UAE-based AI firm G42 to invest$1 billion in a new data centre in Kenya to expand cloud-computing services in East Africa. The data centre, built by G42 and its partners, will use geothermal energy and provide access to Microsoft's Azure through a new cloud region specifically for East Africa.

This initiative is part of a broader effort by major tech companies like Amazon, Microsoft, and Alphabet to meet the growing demand for cloud and generative AI services. G42, which recently received a$1.5 billion investment from Microsoft, is also developing an open-source AI model in Swahili and English.

During President William Ruto's visit to the United States, a letter of intent for the project will be signed on Friday between Microsoft, G42, and Kenya's Ministry of Information, Communications, and the Digital Economy. The data centre is expected to be operational within two years after the final agreements are signed.