Microsoft is partnering with UAE-based AI firm G42 to invest $1 billion in a data center in Kenya as part of efforts to expand cloud-computing services in East Africa, the companies announced on Wednesday. The data center, which will be built by G42 and its partners, will be powered by geothermal energy and will provide access to Microsoft's Azure through a new cloud region for East Africa.

Abu Dhabi-based G42, which recently received a $1.5 billion investment from Microsoft, has begun training an open-source large-language AI model in Swahili and English. The collaboration is part of a broader trend where major tech companies like Amazon, Microsoft, and Alphabet are investing heavily in new data centers globally to meet the rising demand for cloud and generative AI-related services.

A letter of intent will be signed on Friday between Microsoft, G42, and Kenya's Ministry of Information, Communications, and the Digital Economy, coinciding with President William Ruto's state visit to the United States. Microsoft stated that the data center is expected to become operational within two years following the signing of definitive agreements.