Microsoft’s (MSFT) African Data Center Struggles with Payment Requests, Bloomberg News Reports

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On May 10, Reuters, citing Bloomberg News, reported that Microsoft Corporation (NASDAQ:MSFT)’s East Africa data center project has stalled as talks with Kenya broke down over guaranteed payment demands.

Bloomberg News, citing people familiar with the matter, reported that Microsoft Corporation (NASDAQ:MSFT) and G42 asked Kenya to commit to annual capacity payments. However, negotiations faltered when the government could not meet the requested guarantees. The project traces back to May 2024, when Microsoft Corporation (NASDAQ:MSFT) partnered with G42 to invest $1 billion in a Kenya-based facility. It was announced during President William Ruto’s visit to Washington under the Biden administration, Reuters said.

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Plans called for a geothermal-powered site delivering Azure cloud access across East Africa. Bloomberg reported the companies could scale back the project.

Principal Secretary at Kenya’s Ministry of Information, John Tanui, told Bloomberg the project “is not failed or withdrawn” and said its scale “still requires some structuring,” while noting ongoing discussions around power requirements. Reuters said it was not able to immediately confirm Bloomberg’s report.

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