Microsoft and G42 have unveiled a $1 billion digital ecosystem initiative for Kenya

G42, in partnership with Microsoft and other stakeholders, will spearhead an initial $1 billion investment for various components of the comprehensive package. One key investment priority for Kenya is the establishment of a cutting-edge green data center by G42 and its partners to support the operation of Microsoft Azure in a new East Africa Cloud Region.

The initiative will encompass four additional pillars to be pursued in collaboration with local partners: (1) development and research of local-language AI models; (2) establishment of an East Africa Innovation Lab with comprehensive AI digital skills training; (3) investments in international and local connectivity; and (4) collaboration with the Kenyan government to enhance safe and secure cloud services across East Africa.

A letter of intent formalizing the partnership will be signed during Kenyan President William Ruto's state visit to the United States, marking the first state visit to Washington, D.C., by a sitting African head of state in almost two decades. The agreement will be signed between Microsoft, G42, and Kenya's Ministry of Information, Communications, and the Digital Economy, with support from the governments of the United States and the United Arab Emirates.

Under the agreement, G42 and local partners will construct a cutting-edge data center campus in Olkaria, Kenya, powered by renewable geothermal energy and equipped with advanced water conservation technology. This facility will host and offer access to Microsoft Azure services through a new East Africa Cloud Region, set to be operational within 24 months of the definitive agreement signing.

The new cloud region will offer customers scalable, secure, and high-speed cloud and AI services to drive cloud adoption and digital transformation in businesses, customers, and partners throughout Kenya and East Africa.President William Ruto emphasized that the partnership goes beyond technology, representing the collaboration of three nations sharing a vision of an empowered nation where every citizen can thrive.

The President highlighted, "In the spirit of mutual growth and shared prosperity, this Letter of Intent serves as a foundation for a brighter, more connected, and digitally empowered future for the USA, Kenya, and the UAE. It reflects our joint commitment to narrowing the digital gap, fostering technological advancement, and laying the groundwork for a flourishing digital economy that extends benefits across the African continent and beyond."

Brad Smith, Microsoft's vice chair and president, remarked, "This collaboration between two companies and three nations underscores a significant opportunity to introduce digital technology to the Global South in a secure and reliable manner. It marks the most substantial and extensive digital investment in Kenya to date, demonstrating our trust in the country, its government, its citizens, and the future of East Africa."

Peng Xiao, the group chief executive officer of G42, expressed, "In collaboration with Microsoft, we are thrilled to collaborate with the Kenyan government to introduce a transformative phase for the digital ecosystem in Kenya and the surrounding region. Through the establishment of a green data center and the creation of AI solutions customized to the local context, G42 is dedicated to promoting sustainable technological advancement."

This initiative aims to empower the Kenyan government and communities with resilient, secure cloud services and AI capabilities, laying the groundwork for a prosperous digital economy throughout the region.In order to bolster national economic growth and development and cater to Kenya's distinct cultural and linguistic requirements, G42 has initiated efforts to train an open-source large language AI model in Swahili and English using its data infrastructure in the United States.

To further enhance this initiative and expedite advanced research in Kenya, Microsoft and G42 will enhance their collaborative efforts and provide support to local universities. This support will be facilitated through the Microsoft Africa Research Institute, the Microsoft AI for Good Lab, the Mohammed Bin Zayed University of Artificial Intelligence in Abu Dhabi, and selected universities in Kenya and East Africa.

Microsoft's AI for Good Lab in Nairobi will leverage AI technology to collaborate with non-profit organizations and other partners in addressing economic and societal priorities across East Africa.

The efforts will involve utilizing advanced AI techniques to improve food security by providing site-specific fertilizer recommendations that boost agricultural productivity while reducing environmental impacts. Additionally, support will be extended to The Nature Conservancy (TNC) by leveraging AI high-resolution satellite data to monitor and mitigate water risks for downstream wildlife and communities in northern Kenya.

In collaboration with the Kenya Red Cross Society, Kenya Space Agency, and National Disaster Management Unit, the AI for Good Lab will focus on enhancing climate resilience by utilizing AI models on high-resolution satellite data for disaster preparedness and response.

Furthermore, in partnership with the Smithsonian and Kenya Wildlife Trust, the Lab will employ high-resolution satellite imagery and AI to monitor wildlife populations and track livestock expansion near protected areas.