Microsoft Corp. ( MSFT ) and G42, an Artificial Intelligence company, announced a significant digital investment in Kenya, partnering with the Republic of Kenya’s Ministry of Information, Communications, and the Digital Economy.

The initiative includes a $1 billion investment, aimed at transforming Kenya’s digital landscape.

G42 will oversee the creation of a state-of-the-art green data center in Kenya, running Microsoft Azure in a new East Africa Cloud Region. 

The investment package, developed with the Kenyan government, the U.S., and the United Arab Emirates, aims to foster local-language AI model development, establish an East Africa Innovation Lab, enhance digital skills training, and improve connectivity infrastructure, 

The data center, to be located in Olkaria, Kenya, will operate on renewable geothermal energy and feature advanced water conservation technology. 

The facility will support Microsoft Azure services in the new East Africa Cloud Region, expected to be operational within 24 months of the signing of the definitive agreements. 

The initiative aims to boost cloud adoption and digital transformation for businesses and individuals across the region.

William Samoei Ruto, President of Kenya, said, “This partnership is bigger than technology itself. It is about coming together of three countries with a common vision of a nation empowered by technology, where every citizen has the opportunity to thrive in the global digital landscape. It’s about building a future where Kenya flourishes as a digital leader.”

Brad Smith, Microsoft’s vice chair and president, described the investment as the single largest and broadest digital investment in Kenya’s history. 

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G42 and Microsoft ( MSFT ) will train an open-source large language AI model in Swahili and English, with support from local universities. 

The Microsoft AI for Good Lab in Nairobi will address economic and societal challenges, including food security and climate resilience, using AI technology.

The East African Innovation Lab in Nairobi will support startups and entrepreneurs, providing access to Microsoft ( MSFT ) tools and mentorship. 

Microsoft ( MSFT ) and G42 will also offer extensive digital and AI skills training across Kenya, targeting government employees, young entrepreneurs, and the broader workforce.

The partnership will enhance internet connectivity in Kenya through expanded fiber and wireless networks, aiming to connect millions across East Africa by 2025. 

The parties will work with the Kenyan government to establish a “trusted data zone” for secure cloud services. 

Microsoft ( MSFT ) stock has gained more than 34% in the past 12 months. Investors can gain exposure to the stock via the Technology Select Sector SPDR Fund ( XLK ) and IShares U.S. Technology ETF ( IYW ) .

Price Action: MSFT shares are trading higher by 0.52% at $431.26 at the last check Wednesday.

Disclaimar: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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