US tech giant Microsoft has joined forces with UAE AI outfit G42 to build a USD 1 bn geothermal data center in Kenya, according to a statement. The data center is part of a comprehensive suite of digital investments in Kenya to accelerate digitalization and promote cloud computing and AI services in East Africa.

The details: The facility will be located in Olkaria, a geothermal-rich area in Kenya which operates on renewable geothermal energy and water conservation technologies. G42 will offer access to Microsoft Azure through a new East Africa cloud region, expected to be up and running within two years of parties signing definitive agreements, Microsoft noted.

The letter of intent will be signed on Friday between Microsoft, G42, and Kenya’s Ministry of Information, Communication, and Digital Economy as part of Kenyan President William Ruto’s visit to the US.

Quality control and safety measures: The cloud region will operate as part of a “trusted data zone” based on global digital safety, privacy, and security standards, the tech-giant said. Both parties will also ensure the nation has sufficient resources and technical assurance before the hub is complete.

Kenya is a major player in the global geothermal ecosystem, ranking as the eighth largest geothermal power user in 2023, according to Reuters. With the current projects underway, Kenya is positioned to rank fourth on the global list of geothermal users and aims to produce over half of its electricity from geothermal sites, the newswire says, citing data from Global Energy Monitor shows.

G42 has gone all-in to improve Africa’s data infrastructure: The company inked an MoU with Kenya’s EcoCloud in March to establish a 100 MW data center powered by geothermal energy to promote the development of cloud computing and AI services in a bid to stimulate Kenya’s digital economy. It also signed an agreement with Mauritania’s Digital Transformation, Innovation, and Modernization Ministry in mid-2023 to develop and improve the country’s national data center.

This isn’t the first time Microsoft and G42 team up: Microsoft invested some USD 1.5 bn in G42 to position the UAE as a “global AI hub,” while both firms had previously inked an MoU in April 2023 to explore the development of customized cloud solutions in the UAE.

OTHER G42 NEWS-

#1-Presight is all set to snag a stake in AIQ: ADX-listed data analytics firm Presight AI Holding obtained shareholder approval yesterday to acquire a 51% majority stake in AIQ, Adnoc’s AI joint venture with G42, an ADX disclosure (pdf) reads. Presight is indirectly acquiring the entity through the acquisition of the entirety of G42’s shares in P Ventures. Presight had said in a previous press release (pdf) that the transaction values AIQ at USD 1.4 bn.

REFRESHER- Presight revealed its plans to acquire a majority stake in AIQ at the start of the month, saying it would be acquiring the entirety of G42’s 40% stake in AIQ, in addition to 11% of Adnoc’s 60% stake in the JV. The acquisition aims at combining AI energy solutions with extensive big data analytics, to help advance Adnocs’ plans to become the “energy industry’s leading AI company,” Industry Minister and Adnoc CEO Sultan Ahmed Al Jaber, who will assume the role of chairman at AIQ, said.

AND- Presight inked an MoU with software developer Obvious Technologies to jointly develop big data and AI tech geared at enhancing enterprise operations management, according to a press release (pdf). The partnership will initially focus on crisis, emergency, and disaster management.

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