The project, announced in May 2024 during President William Ruto’s visit to Washington, was expected to become one of the biggest digital infrastructure investments in East Africa. 

Microsoft and Abu Dhabi-based G42 planned to build the facility in Olkaria, near Naivasha, using geothermal power. It was also meant to host Microsoft’s first Azure cloud region in East Africa.

However, negotiations later became difficult after Microsoft and G42 asked the Kenyan government to guarantee annual payments for part of the data centre’s computing capacity. 

According to reports from Bloomberg, Kenya could not provide guarantees at the level the companies requested, and discussions on the Microsoft data centre project stalled.

The delay has now raised wider concerns about whether Kenya’s current infrastructure can support hyperscale data centres and growing artificial intelligence workloads.

At full scale, the facility was expected to require around 1 gigawatt of electricity. That is close to one-third of Kenya’s current installed power capacity, which stands between 3,000 and 3,200 megawatts.

President Ruto had earlier warned about the pressure such a facility could place on the country’s grid.

“To switch on that one data centre, we would need to shut off power for half the country.”

Kenyan officials say the project has not been abandoned. John Tanui, principal secretary at Kenya’s Ministry of Information, said discussions are still ongoing, although the structure and scale of the project is still under review.

“The scale of the data centre they wanted to do still requires some structuring,” he said, while adding that power requirements are still under discussion.

The government now wants to expand Kenya’s electricity capacity to 10,000 megawatts by 2030 as it pushes to attract more large-scale technology investments.

Officials are also considering a phased rollout, beginning with a smaller 100-megawatt facility before expanding gradually. That approach could reduce immediate stress on the national grid while allowing Kenya to continue negotiations with Microsoft and G42.

The uncertainty around the project also reveals a bigger challenge facing African countries trying to attract global cloud and AI investments. 

While demand for digital infrastructure is growing with speed, many countries still lack the power generation and transmission capacity needed to support energy-intensive facilities.

The delay could also affect the rollout of Microsoft Azure services across East Africa, including cloud tools tied to products such as OneDrive and Copilot.

Neither Microsoft nor G42 immediately responded to requests for comment on the reported Kenya data centre dispute.

This is one of the largest investments in the AI and energy sector in recent U.S. history.

Set at Carnegie Mellon University, the Energy and Innovation Summit will bring together tech giants and energy firms including Microsoft, Meta, Alphabet, ExxonMobil, BlackRock, SoftBank, and Anthropic.

The focus is fixed on securing the power needed for AI’s expansion and strengthening America’s standing in the global tech sector.

“America must lead the world in artificial intelligence. That’s not optional. It’s national security,” Trump reportedly told aides last week ahead of the summit. His latest strategy directly responds to China’s $1.5 trillion AI pledge and its rapid construction of solar-powered data centres.

A major highlight of the summit will be Blackstone’s anticipated $25 billion announcement for data centres and energy infrastructure across Pennsylvania.

This project alone is expected to create 6,000 annual construction jobs and 3,000 permanent positions, driving both economic growth and AI infrastructure expansion.

But the conversation won’t just revolve around dollars. U.S. officials are drafting executive orders to cut through the bureaucratic gridlock currently slowing down data center projects. Key proposals include streamlining Clean Water Act permits, opening federal land for infrastructure, and fast-tracking connections to the overstretched power grid.

Mike Sommers, CEO of the American Petroleum Institute, voiced cautious optimism: “Executive action is good, but real durable permitting reform requires an act of Congress, not just an executive order.”

At the core of Trump’s energy strategy is a surprising comeback, nuclear power. Microsoft and Constellation Energy are reviving the long-shuttered Three Mile Island Unit 1 reactor, now rebranded as the Crane Clean Energy Center. 

Scheduled to reopen by 2027, a year earlier than planned, the plant will supply 835 megawatts of carbon-free power to Microsoft’s AI data centers under a 20-year contract. 

This is one of the first nuclear restarts in American history and could serve as a blueprint for AI-energy integration nationwide.

The urgency of these investments is impossible to ignore. America’s power demand is soaring after two stagnant decades, largely driven by AI and cloud computing data centers mushrooming across the country. 

Data centers are expected to triple their electricity consumption by 2035, jumping from 3.5% to 8.6% of total U.S. power usage.

The stakes are geopolitical too. As China rapidly scales its AI capabilities, the U.S. faces pressure to match its rival’s speed and scale. Trump’s AI Action Plan, ordered in January and due for public release on July 23, labelled ‘AI Action Day’ by insiders, aims to solidify America’s role as the “world capital of artificial intelligence.” 

The plan, impacted with input from the National Security Council, focuses on leveraging fossil fuels, nuclear energy, and deregulation to rapidly expand infrastructure.

Big Tech is no longer waiting for gradual grid upgrades, as firms are working to secure power supplies, even exploring unconventional deals like Microsoft’s involvement in reviving nuclear power plants.

Khaldoon Al-Mubarak, CEO of Mubadala, Rene Hass, CEO of Arm and board director of SoftBank as well as other top executives including Larry Fink of BlackRock, Darren Woods of ExxonMobil, Brendan Bechtel of Bechtel, and Dario Amodei of Anthropic will gather at tomorrow’s summit, as AI begins to depend on kilowatts, not just on code.

With a 2.4% increase in its share price on Wednesday, the chipmaker’s stock hit $164, strengthening its place at the top of the global tech hierarchy, above Apple and Microsoft.

Not without challenges, the California-based firm, which was founded in 1993, surged past a $2 trillion valuation earlier this year in February, then blew past $3 trillion in June. 

Now, in under seven months, Nvidia has doubled its worth, a feat unmatched in stock market history. And it did all of this amid geopolitical friction, export bans, and a volatile tech environment.

Despite being locked out of the $50 billion Chinese chip market due to tightening U.S. export controls, Nvidia’s performance has barely flinched. In fact, CEO Jensen Huang was apt on how this affects them: “The $50 billion China market is effectively closed to U.S. industry,” he said in May, adding that losing China would be a “tremendous loss.”

But even with an $8 billion sales gap from blocked shipments of its H20 chips to China, Nvidia’s machine has not stalled. In the first quarter of FY2026 alone, the company posted $44.1 billion in revenue, a 69% jump from the same period last year. It’s now guiding for $45 billion in Q2. Some analysts are projecting as much as $200 billion in full-year revenue, with expectations rising to $250 billion by FY2027.

So, what’s driving this engine? Nvidia has built a near-monopoly in the data centre GPU market, with a 90% share. It supplies the processing muscle behind OpenAI’s GPT-4, Google’s Gemini, xAI’s Grok, and enterprise AI workloads across Microsoft, Amazon, Meta, and Tesla. 

Despite murmurs earlier this year noting OpenAI might explore alternatives, the firm publicly reaffirmed its reliance on Nvidia’s chips, silencing any talk of defection.

From Europe to the U.S., policy changes are tilting in Nvidia’s favour. CEO Huang has hinted at big expansion plans for Europe, where AI infrastructure uptake still lags. Back in the U.S., legislative tailwinds are pushing forward.

The newly passed “Big Beautiful Bill” is expected to increase semiconductor tax credits, strengthening Nvidia’s already-tight supply chains.

Even Nvidia’s market cap now tells a global story: it’s worth more than the entire London Stock Exchange and overshadows the combined value of all public companies in Canada and Mexico.

While some might see the company’s meteoric rise as a bubble waiting to pop, Wall Street seems to disagree. Nvidia’s stock has surged 74% since April and risen more than fifteenfold over five years.

And unlike the dot-com era’s inflated valuations, Nvidia’s growth is backed by tangible demand, from governments, corporations, and developers looking to harness artificial intelligence.

While other tech giants are trying to diversify or catch up, Nvidia has entrenched itself as the foundation of AI infrastructure worldwide. 

Per Reuters, company’s market capitalisation climbed to $3.86 trillion, putting it ahead of Microsoft’s $3.69 trillion valuation and making it the new front-runner in the space.

Nvidia’s surge comes on the back of its fiscal 2025 results, which showed an astonishing 114% year-on-year revenue jump to $130.5 billion. Its net income grew 145% to $72.9 billion. 

Most of that growth is concentrated in its data centre division, which now contributes over 80% of its total revenue, driven largely by hyperscalers like Microsoft, Amazon, and Meta who are aggressively expanding AI workloads.

Microsoft may not be far behind, with its valuation close on Nvidia’s heels. It is still doing great thanks to its investments in OpenAI, enterprise Copilot tools, and its AI-powered Azure cloud services. 

But for now, Nvidia sits at the top, powered by massive infrastructure deals and real-world deployment of its H100 and upcoming Blackwell GPUs, which are supporting the most complex AI systems across the globe.

Again, Meta’s market cap rose 14% to $1.86 trillion, Broadcom followed with a 13.9% increase to $1.3 trillion and Amazon also gained 7%, climbing to $2.33 trillion. All three benefited from strong investor confidence in their AI strategies and cloud infrastructure plays.

Meanwhile, Tesla was the outlier, its valuation slipped by 8.3% to $1.02 trillion. The drop came after a high-profile clash between CEO Elon Musk and U.S. President Donald Trump. 

Musk’s objection to Trump’s spending bill and the President’s response, threats to cut federal subsidies for Tesla and SpaceX, resulted in a 14% one-day drop in Tesla shares, wiping out $150 billion in value. The episode triggered investor jitters and regulatory speculation that has yet to settle.

Apple, though still among the top three with a $3.1 trillion market cap, has seen its momentum cool. Its December 2024 peak of $3.92 trillion is still unmatched. Slowing iPhone sales and delayed integration of advanced AI technologies have held back its valuation while rivals capitalise on faster innovation cycles.

Meanwhile, analysts are preparing for a new benchmark. “We believe both Nvidia and Microsoft will hit the $4 trillion market cap club this summer and then over the next 18 months the focus will be on the $5 trillion club … as this tech bull market is still early being led by the AI Revolution,” said Daniel Ives of Wedbush Securities.

The data centre is of one of MTN’s most ambitious infrastructure projects to date, marking a significant leap in the country’s digital evolution.

With an initial investment of $100 million for phase one and a further $135 million planned for phase two, the facility stands as Nigeria’s largest prefabricated modular data centre and one of the biggest in West Africa.

This move positions the telecom giant not just as a leader in the sector but as a central player in the country’s digital transformation and cloud computing space.

Named in honour of the late Sifiso Dabengwa, a former CEO of both MTN Nigeria and the MTN Group, the data centre commemorates a man whose contributions helped shape the company’s legacy in Nigeria and across Africa. 

More than a technological facility, the Dabengwa Data Centre represents MTN’s broader commitment to Nigeria’s data sovereignty, innovation economy, and long-term digital resilience. 

MTN Dabengwa Data Centre will significantly reduce the country’s reliance on foreign cloud services and keep vital digital infrastructure within national borders.

Watch out for details…

ADC is part of Cassava Technologies a pan-African technology leader providing a vertically integrated ecosystem of digital services and infrastructure enabling digital transformation across Africa.

As a key stakeholder with over three decades in the Data Centre, Cloud, Connectivity, and Managed IT Services industries, Dr. Krish is renowned for his significant contributions in building the most number of data centres in the region.

Dr Krish is vastly experience in incubating startups and positioning them as challengers in high growth markets where they operate.

His impressive experience in running businesses includes complete life cycle management of the business includes: business planning, end-to-end P&L ownership, product development, sales/business development, go-to-market strategies formulation and execution, establishing multi megawatt Data Centre projects, service delivery, procurement, HR, finance and other business support functions, establishing systems and processes including integrated BSS and OSS automation, as well as applying the latest AI trends across the business-functions

He is a recipient of several awards by various institutions recognizing his impeccable contribution toward the development of the Data Centre Industry and the overall ICT sector in Africa over the years.

In this interview, Dr. Krishnan Ranganath, the regional executive – West Africa & Morocco- at Africa Data Centres (ADC), speaks on sundry issues impacting the tech industry. Excerpt:

Would you say the 2024 global economic challenges still affect the tech industry, particularly from your perspective in Africa?

Dr. Krish: 2024, a year of significant uncertainty across the globe, also had its share of challenges for Africa. However, we chose to take these challenges as learning opportunities—making the necessary adjustments and finding ways to adapt and move forward.

In the tech industry, change is constant; each day brings something new. We saw the rise of Nvidia and AI, and now, overnight, we’re discussing Deepseek. As a tech professional, it’s crucial to stay adaptable and embrace global changes while exploring how to apply them locally and regionally.

Technology continues to evolve daily, infiltrating our personal lives and promising more advancement throughout the year. These developments are likely to create significant employment opportunities across various sectors.

What strategic priorities should the tech industry focus on in 2025 to stay competitive?

Dr. Krish: In the midst of a rapidly changing technological landscape, companies are navigating the transformative power of emerging technologies such as artificial intelligence (AI), blockchain, and the Internet of Things (IoT). A striking 85% of businesses report that adopting AI has already improved productivity. McKinsey notes that companies using AI extensively can increase their cash flow by 122% over a five-year period.

These innovations are reshaping industry frameworks and altering competitive dynamics—startups leveraging blockchain technology are disrupting financial services and attracting substantial funding. This shift compels established players to rethink strategies, invest in digital transformation, and adapt to new consumer expectations driven by rapid technological advancements.

Looking at 2025, AI is at the centre of global conversations, supported by big data, cloud computing, and cybersecurity, which play a critical role in the tech ecosystem.

What trends are shaping data centre adoption in Africa amid the rise of cloud and AI?

Dr. Krish: As the drive to develop artificial intelligence and related technologies grows, so does the demand for data processing capacity—fuelling a data centre boom across Africa, despite infrastructure challenges.

In recent years, investment in African data centres has increased, though not at the same scale as more established economies.

Since 2022, new carrier-neutral data centres have been commissioned, with more in the pipeline. Key construction activity is underway in Egypt, Kenya, Morocco, Nigeria, and South Africa. These developments are supported by efforts to improve regulatory frameworks, energy infrastructure, and connectivity—while also promoting digital transformation, cloud adoption, and addressing the skills gap.

However, the continent still lags behind global benchmarks, accounting for less than 2% of the world’s co-location data centre supply. Notably, more than half of this capacity is concentrated in South Africa, according to the Africa Data Centres Association.

Currently, cloud services for Africa are largely served from South Africa and Europe. As demand rises, we’re seeing the emergence of local cloud regions in Nigeria and Kenya, with further expansion expected in Morocco, Egypt, and other countries.

What are the best ways for industry stakeholders to collaborate and accelerate data centre adoption in Africa?

Dr. Krish: Among African data centre operators, we have five to six key players. Collaboration should focus on capacity sharing across locations and real-time communication regarding available resources.

Initiatives like the Africa Data Centres Association (ADCA) are gaining traction, and we expect greater clarity on collaborative strategies moving forward.

We also need to prioritise human capacity building and enhanced network connectivity between data centres. This will simplify client operations across multiple providers and drive a more integrated infrastructure ecosystem.

What role should governments play in accelerating Africa’s data centre expansion?

Dr. Krish: Take Nigeria as an example—regulatory bodies like the NDPC and NITDA play pivotal roles in driving data centre growth. When governments advocate for digitalisation and data localisation, the local cloud and data centre industries benefit significantly.

A major opportunity lies in repatriating African government data—over 75% is currently hosted outside the continent. Bringing this data back home would be a substantial driver for local industry, demonstrating leadership from the front.

Additionally, governments should consider reducing customs tariffs on data centre-related imports. While free zones exist, most are located outside city limits—areas where clients typically prefer data centres to be.

Do you see a substantial market opportunity for data centres in Nigeria?

Dr. Krish: The Nigerian data centre market presents significant growth opportunities, driven by increasing cloud adoption, digitalisation, and the need for secure and scalable data storage.

The market size is estimated at 136.7 MW in 2025 and is expected to reach 279.4 MW by 2030, growing at a CAGR of 15.37%.

Additionally, colocation revenue is projected to increase from USD 251.1 million in 2025 to USD 578.1 million by 2030, reflecting a CAGR of 18.15%.

Data localisation initiatives and digital transformation efforts are driving profound changes in the Nigerian data centre market, with government emphasis on local data hosting leading to increased domestic investments.

“Our previous facility, LGS-1, ran on 1.5 megawatts of power. The new site? 12 megawatts, nearly 800% increase in capacity. This isn’t just an expansion, it’s an outright transformation of Nigeria’s data infrastructure,” Lars Johannisson, Rack Centre, CEO stated.

“What it really means, going from 1.5 to 12 megawatts, we are establishing ourselves as a hyperscale AI-ready data centre in Nigeria. We are essentially doubling the existing capacity of data centres in Nigeria.”

For 12 years, Rack Centre has thrived in ensuring data connectivity in West Africa, asserting a 100% uptime record since 2013, an achievement almost unheard of in the industry.

“Uptime and asset integrity are everything,” the CEO stressed. “When your data is unreachable, business stops. We don’t let that happen.”

But beyond just keeping the lights on, Rack Centre has built a network that rivals global standards. The facility connects to all eight undersea cables serving Nigeria, giving businesses the most robust and redundant connectivity available.

The world is moving fast, and artificial intelligence is leading. “AI adoption is happening faster than PC and internet adoption ever did,” Johannisson noted. “The infrastructure must be ready, and that’s exactly what we’ve built.”

This new facility is designed with AI and hyperscale computing in mind. The Data Centre is made up of six halls with each taking two megawatts and racks that can handle up to 50 kilowatts of power per unit. The centre is prepared for the high-performance demands of AI workloads. 

“Infrastructure is the foundation of AI-driven economies,” said Ezekiel Egboye, the COO. “We are building for today while preparing for a future that’s coming at lightning speed.”

Nigeria’s internet penetration stands at 48% and is growing fast. It’s also home to Africa’s largest fintech ecosystem, making it a prime location for digital investment. Nonetheless, even with these strengths, only 2% of the world’s data centres are in Africa, half of which are concentrated in South Africa.

“This is an untapped goldmine,” Rack Centre’s CEO stated.

Focusing on Sustainability 

Running a data centre is energy-intensive, but Rack Centre is taking a sustainable-first approach. “Since 2013, we have operated independently of the national grid, generating our own power,” said the COO.

The new facility will rely primarily on gas turbines and solar power, making it the most energy-efficient data centre in Africa.

“We’re betting on sustainable digitalisation,” Egboye affirmed. “Our clients demand it, society expects it, and we are delivering it.”

With data being kept within Nigeria, Rack Centre is reducing capital flight, cutting latency, and providing more affordable digital services, ultimately bolstering the country’s economy.

“For businesses, this means lower costs of operations, faster transactions, and greater reliability,” said Folu Aderibigbe, sales director at Rack Centre. “Every sector will benefit from this, including banking and entertainment.”

The financial impact is enormous. “We’re talking about a triple-digit million-dollar investment—the largest of its kind in West Africa,” the CEO revealed.

The ultimate goal? Making digital access available to all Nigerians. “Cloud adoption is not a luxury, it has become a necessity.”

But access must be affordable. “The key to closing the digital divide is ensuring that 2G users can transition to 4G and 5G,” Egboye explained. “We’re working with mobile operators and device makers to make this a reality.”

Rack Centre is ensuring that businesses can keep their data within the country while meeting global security and compliance standards.

“We are the only IFC-certified data centre in the Middle East, Africa, and Europe,” the COO highlighted. “This is a big deal—it means we meet the world’s highest standards for environmental and energy efficiency.”

This is a statement. Rack Centre isn’t just expanding, but boosting Nigeria’s entire digital sector.

“By April, we’d launch West Africa’s largest data centre investment,” Johannisson said. “And this is just the beginning.”

Hotard is currently the executive vice president and general manager of the Data Center & AI Group at Intel.

This leadership change comes as telecom equipment makers, including Nokia, face a slowdown in 5G infrastructure sales. 

With artificial intelligence and data centre technology becoming top areas of growth, the decision taken by Nokia to appoint Justin Hotard is a well-thought focus on these emerging sectors.

Sari Baldauf, chair of Nokia’s Board, stressed Hotard’s expertise in these areas, saying, “He has a strong track record of accelerating growth in technology companies along with vast expertise in AI and data centre markets, which are critical areas for Nokia’s future growth.”

Market analysts have reacted to the development, with JPMorgan describing the leadership change as unexpected. “Given that a new CEO has already been appointed, it looks like this transition was in the works for some time. With the Datacentre and AI background of the new CEO, it is clear which areas Nokia wants to focus on,” they noted. 

Analysts at Inderes also view the move as a deliberate transition towards strengthening Nokia’s Network Infrastructure division, which is seeing increasing investments in AI-driven solutions.

Nokia has been striving to ensure its growth beyond traditional telecom equipment. Last year, the company announced a $2.3 billion acquisition of U.S.-based optical networking firm Infinera, aiming to capitalise on the rising demand for data centre infrastructure.

Even with gains of 27.85% in Nokia’s share price over the past year, the company’s stock is still lower than its peak in 2000. At the time of the announcement, Nokia’s shares rose by 1.6% to €4.70 on the Helsinki Stock Exchange, outperforming the market, which saw a 0.45% increase.

Lundmark, who took over as CEO in 2020, will remain with the company as an advisor to Hotard until the end of the year. 

Speaking on the leadership change, Baldauf explained, “The planning for this leadership transition was initiated when Pekka indicated to the Board that he would like to consider moving on from executive roles when the repositioning of the business was in a more advanced stage, and when the right successor had been identified.”

With Hotard’s appointment, Nokia seeks to increase its focus on AI and data centre infrastructure, aligning itself with the current demands of the technology sector.

In a statement, Microsoft’s Vice Chair and President, Brad Smith, revealed the company’s intent to enhance its capacity for training AI models and deploying cloud-based applications worldwide.

A portion of the Microsoft Data Centre budget—over half—is set to be spent within the United States, with the fiscal year concluding in June 2025.

Smith noted that AI has the prospects to enhance innovation and productivity across multiple sectors. He pointed out that the United States could maintain a leadership role in this technology-driven shift by leveraging its strengths and facilitating international collaborations.

The initiative comes as competition increases among tech giants to expand their cloud infrastructure. In the past fiscal year, Microsoft’s capital expenditures exceeded $50 billion, primarily directed towards building server farms to meet the surging demand for AI-driven services. 

Competitors like Amazon and Google are similarly ramping up their investments in high-capacity data centres.

One project linked to Microsoft is the planned development of an AI supercomputer facility, tentatively named Stargate, which could cost over $100 billion. 

While earlier reports revealed collaboration with OpenAI on this venture, Microsoft has since described the organisation as a competitor in recent regulatory filings.

The massive infrastructure required for AI services also brings challenges. The power demands of these data centres are expected to rise greatly, prompting Microsoft to explore alternative energy sources. 

The company has reportedly secured an agreement to reopen a nuclear reactor at the Three Mile Island facility in Pennsylvania to meet its energy needs.

The overheating occurs when up to 72 of these cutting-edge graphics processing units (GPUs) are connected in a single server rack, delaying the rollout of essential data centres and potentially disrupting operations for major tech companies.

The Blackwell chips, unveiled in March and expected to ship in the second quarter, were anticipated to boost AI processing with speeds 30 times faster than Nvidia’s previous offerings. 

However, the delays have left cloud service providers like Meta Platforms, Google, and Microsoft struggling to adjust their infrastructure plans. These firms rely heavily on Nvidia’s technology to power their AI-driven services and maintain a competitive edge in the industry.

Sources close to Nvidia’s operations have revealed that the company has repeatedly requested its suppliers to modify the server rack designs to address the overheating problem. 

While Nvidia’s spokesperson described these adjustments as “normal engineering iterations,” reports reveal that the timing of these changes could disrupt deployment schedules.

The redesign process has placed additional stress on customers who are racing against time to establish next-generation data centres. 

With high demand for AI-powered tools like chatbots and advanced analytics, any delay in the availability of the Blackwell platform could impact operational timelines.

Despite the current setbacks, the Blackwell chips come as a huge innovation in AI hardware. Combining two silicon dies into a single unit, Nvidia has achieved outstanding processing power. 

The chips are seen as essential for handling complex AI tasks, making them a necessary component for tech giants aiming to expand their AI capabilities.

Analysts had projected Nvidia’s revenue from the Blackwell chips to reach $6 billion in the coming quarter, showing the high demand for this platform. 

Nvidia CEO Jensen Huang recently described interest in the Blackwell AI chips as “insane,” emphasising the industry’s reliance on the company’s technological advancements.

The delays come at a time when Nvidia is under pressure to maintain its top place in the AI hardware market. 

The company’s recent market valuation of $3.482 trillion reiterates its indispensability in the tech world, but challenges like these could open opportunities for competitors such as AMD and Intel to close the gap.

While Nvidia has not officially informed customers of further shipment delays, the adjustments to the server rack designs suggest ongoing work to resolve the overheating issues.