Microsoft has formed a partnership with an artificial intelligence company based in the United Arab Emirates to invest $1 billion in a data center located in Kenya

Microsoft (MSFT.O) is collaborating with G42, an AI business located in the UAE, to invest $1 billion on a data center in Kenya. This investment is aimed at expanding Microsoft’s cloud-computing services in East Africa.

G42 and its partners will construct a data center that will be fueled by geothermal energy. This data center will offer access to Microsoft’s Azure platform through a newly established cloud region specifically for East Africa.

Significance

G42, a company based in Abu Dhabi, in which Microsoft made a $1.5 billion investment last month, has initiated the training of an open-source AI model capable of processing vast amounts of text in both Swahili and English languages.

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Amazon.com, Microsoft, and Alphabet are allocating significant funds to establish additional data centers in various countries to meet the increasing demand for cloud and generative AI services.

What is the next step?

Microsoft, G42, and Kenya’s Ministry of Information, Communications, and the Digital Economy will sign a letter of intent on Friday. This signing will take place during the state visit of Kenya’s President William Ruto to the United States, according to Microsoft.

Microsoft also said that the data center will be operating within two years after the parties sign definitive agreements.