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Microsoft and UAE-based AI firm G42 have announced a $1 billion investment in Kenya’s digital ecosystem to strengthen the country’s position as a leading tech hub in Africa. The project includes a green data center in Olkaria, development of localised AI models, and training programmes to build digital skills across the region.

The partnership will also launch an East Africa Cloud Region for Microsoft Azure and an AI for Good Lab in Nairobi focused on agriculture, climate resilience and wildlife conservation. Officials say the initiative is designed to close the digital divide, support local innovation and make Kenya a major centre for AI and cloud infrastructure.