Microsoft-G42 data centre stall raises water concerns in Naivasha
This digest was compiled by AI from multiple sources — links to the originals are below.
Plans for a Microsoft-G42 data centre in Olkaria, Kenya, stalled in May 2026 over power capacity concerns. The $1bn project was to run on geothermal energy and scale to 1 gigawatt. Residents around Lake Naivasha already report water shortages, raising questions about the facility's water demand.
Key Facts
- Microsoft and G42 announced the Olkaria data centre in 2024 as part of a $1bn digital investment package for Kenya.
- The proposed facility was to run entirely on geothermal energy and scale to as much as 1 gigawatt of capacity.
- The project stalled in May 2026 over concerns about available power capacity, according to Al Jazeera.
- KenGen communications director Frank David Ochieng said the data centre remains at the design stage.
- Resident Musa Olorkedienye said communities around Olkaria have lost reliable piped water supplies from KenGen and now rely on water vendors.
Project Stalled
Microsoft and UAE-based G42 announced the Olkaria data centre in 2024 as part of a $1bn digital investment package for Kenya. The proposed facility was to run entirely on renewable geothermal energy and incorporate water conservation technology. The companies did not disclose a project-specific water consumption figure in their 2024 announcement. Plans stalled in May 2026 over concerns about available power capacity. KenGen communications director Frank David Ochieng told Al Jazeera that the data centre remains at the design stage and he could not comment further until the project is ready to proceed.
Water Concerns
Naivasha is a freshwater lake in Kenya's Rift Valley whose catchment supports agriculture, tourism, livestock and domestic water use. Grace Kimani, a patrol leader with Lake Naivasha and Oloiden, said the reservoir is under growing pressure from population growth, agriculture, water abstraction, climate variability, pollution and ecosystem degradation. She said the planned data centre could bring jobs and investment, but its water demand raises concerns about adding pressure to already competing needs, particularly during dry periods. Resident Musa Olorkedienye said communities around Olkaria have seen changes in access to water, including the loss of reliable piped supplies previously received from KenGen. Pastoralist Isaac Leshishi said increasingly harsh weather is adding to the pressure.
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Microsoft-G42 data centre stall raises water concerns in Naivasha
