Report: Microsoft's African data center project postponed due to financial disputes

Microsoft Corporation

Microsoft Corporation

MSFT

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May 10 (Reuters) - Microsoft's plans to build a data center in East Africa have been delayed due to disagreements with the Kenyan government over the company's demand for payment guarantees, Bloomberg News reported on Sunday, citing sources familiar with the matter.

In 2024, Microsoft partnered with UAE-based artificial intelligence company G42 to invest $1 billion in a data center in Kenya as part of its efforts to expand cloud computing services in East Africa.

A Bloomberg News report stated that Microsoft and G42 asked the Kenyan government to commit to paying a certain amount for a specific annual capacity, but negotiations broke down when the government was unable to provide the guarantees at the level requested by Microsoft.


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