Kenya tells Microsoft that $1 billion AI data center would gulp half the country’s electricity

Microsoft’s planned AI and cloud data center in Kenya, built with G42 and intended to run on geothermal power, is reportedly facing delays.

Kenyan officials say a larger version of the project could demand too much electricity and strain the country’s grid.

The project has not been canceled, but the dispute underscores how AI expansion is running into hard energy and infrastructure limits.

The case highlights a growing challenge for AI data centers worldwide: power availability can be a bigger bottleneck than demand.