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<p>A $1 Billion inter-continental investment deal to set up a massive geothermal-powered AI data center in Kenya has resulted in a geopolitical quagmire with the U.S. suspecting if the project could pose national security risks for them.&nbsp;</p>
<p>Recently, Tech giant Microsoft and United Arab Emirates’ G42, an AI company based out of Abu Dhabi, entered in a partnership to develop ‘EcoCloud G42 Mega Data Centre’ in the geo-thermal rich region of Kenya.&nbsp;</p>
<p>The proposed geo-thermal powered data center has been conceptualized to harness renewable energy for technological advancements including AI and the project will see technological inputs being shared both by the U.S. and Emirati governments.</p>
<p>In that regard, an initial investment of $1 Billion was announced in May this year and it remains the single biggest private sector investment made in Kenya. According to experts, the partnership was initially supported by the U.S. as it was seen as a counterweight to the growing presence of China in East Africa.&nbsp;</p>
<p>However, recently, the U.S. government has raised the <a href="https://www.cryptotimes.io/2024/07/02/microsoft-uae-ai-partnership-in-kenya-faces-us-scrutiny-over-security/" target="_blank" rel="noopener noreferrer nofollow">regulatory barriers</a> for large orders of Nvidia Corp’s H100 semiconductors that will be used in the upcoming AI data center in Kenya. According to media reports, US officials are skeptical of the partnership, speculating whether the sharing of resources would pose national security risks for them.&nbsp;</p>
<p>In this article, we will provide a 360-degree overview of the upcoming AI data center project in Kenya and its potential as well as the controversy surrounding it.&nbsp;</p>
<h2 class="wp-block-heading" id="what-is-the-microsoft-g42-kenya-partnership">What is the Microsoft-G42-Kenya partnership?</h2>
<p>In April, <a href="https://news.microsoft.com/2024/04/15/microsoft-invests-1-5-billion-in-abu-dhabis-g42-to-accelerate-ai-development-and-global-expansion/" target="_blank" rel="noopener noreferrer nofollow">Microsoft announ</a>ced the investment of $1.5 billion in Abu Dhabi’s G42 with the aim to increase AI development and global expansion. Then later in May, Microsoft and G42 announced a $1 Billion investment to spend on different projects in Kenya including setting up of a geothermal-powered AI data center.</p>
<p>Under this deal, G42 will lead the initial investment along with other stakeholders to develop a state-of-the-art data center to run Microsoft Azure, the cloud computing platform of the tech giant.The EcoCloud-G42 Mega Data Center is planned to have initial capacity of 100 MW, but with the potential to build up to 1 Gigawatt. To this end, the companies has started to train an open-source, multilingual AI model in English and Swahili.</p>
<p>The deal was fixed coincidentally at the same time when the U.S. President Joe Biden and Kenyan President William Ruto met during a summit meeting in the states.&nbsp;</p>
<h2 class="wp-block-heading" id="why-was-kenya-chosen-to-set-up-the-data-center">Why was Kenya chosen to set up the data center?</h2>
<p>According to a statement released by G42, the project aims to “power the untapped potential of Kenya’s 10 gigawatts of geothermal energy, heralding a new era of green energy-driven digital infrastructure.”</p>
<p>Kenya has been chosen as a strategic location for the project due to it being a geothermal rich region and the stakeholders intend to leverage earth’s heat to cut fossil fuel dependence and carbon emission. The project will also accelerate the economic growth in Kenya and the East Africa region by turning the data centre into an example of Kenya’s digital transformation.</p>
<p>Through this cooperation, businesses of all sizes will be able to take advantage of cloud computing and artificial intelligence (AI) while making sure the technology they use complies with the highest safety and security requirements globally. According to Sheikh Tahnoon bin Zayed Ai Nahyan, the Chairman of G42 <em>“</em><em>The partnership will also support the development of a skilled and diverse AI workforce and talent pool that will drive innovation and competitiveness for the UAE and broader region with the investment of $1B in a development fund for developers.”</em></p>
<h2 class="wp-block-heading" id="why-is-the-us-concerned-over-the-ai-data-center">Why is the US concerned over the AI data center?</h2>
<p>Despite initial enthusiasm for the investment deal, the U.S. government has developed cold feet, of late. According to geo-political experts, the proximity of UAE with China and the security loopholes in Microsoft are main causes of concern for the U.S. government that is now growing increasingly skeptical of the project.&nbsp;</p>
<p>During the covid pandemic, G42 had established ‘’Hayat Biotech”- a joint venture with Beijing based Sinopharm company to develop vaccines for its citizens. According to news reports, a major condition for the data center project to get approved was that G42 would cut ties with China based companies. However, as per U.S. officials, it will be difficult for G42 to cut 100% ties with China due to geo-political challenges. The U.S. is also concerned over alleged misuse of technical resources and AI technology that they will share with the countries.&nbsp;</p>
<h2 class="wp-block-heading" id="conclusion">Conclusion</h2>
<p>It goes without saying that the upcoming project in Kenya holds massive potential for the economic turnaround of not just the country but the entire East Africa region. The project could set a benchmark for using renewable energy in digital infrastructure, thereby massively cutting carbon emission and other operational costs. However, the geopolitical complexities could very well jeopardize the prospects of this project if the U.S. continues to remain skeptical of China’s growing presence and UAE’s integrity in utilizing futuristic technology.</p>
<p>For Meta: An upcoming AI data center in Kenya developed by Microsoft and UAE based G42 has raised alarms in the U.S. over national security threats.&nbsp;</p>

Why is US alarmed over $1 Billion deal for AI Data Center in Kenya?

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