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

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

Last updated: July 6, 2024 5:37 pm
Published July 6, 2024
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A $1 Billion inter-continental funding deal to arrange a large geothermal-powered AI knowledge middle in Kenya has resulted in a geopolitical quagmire with the U.S. suspecting if the undertaking may pose nationwide safety dangers for them. 

Lately, Tech large Microsoft and United Arab Emirates’ G42, an AI firm primarily based out of Abu Dhabi, entered in a partnership to develop ‘EcoCloud G42 Mega Information Centre’ within the geo-thermal wealthy area of Kenya. 

The proposed geo-thermal powered knowledge middle has been conceptualized to harness renewable power for technological developments together with AI and the undertaking will see technological inputs being shared each by the U.S. and Emirati governments.

In that regard, an preliminary funding of $1 Billion was introduced in Could this 12 months and it stays the only greatest personal sector funding made in Kenya. In keeping with specialists, the partnership was initially supported by the U.S. because it was seen as a counterweight to the rising presence of China in East Africa. 

Nonetheless, just lately, the U.S. authorities has raised the regulatory limitations for big orders of Nvidia Corp’s H100 semiconductors that will probably be used within the upcoming AI knowledge middle in Kenya. In keeping with media studies, US officers are skeptical of the partnership, speculating whether or not the sharing of assets would pose nationwide safety dangers for them. 

On this article, we are going to present a 360-degree overview of the upcoming AI knowledge middle undertaking in Kenya and its potential in addition to the controversy surrounding it. 

What’s the Microsoft-G42-Kenya partnership?

In April, Microsoft announced the funding of $1.5 billion in Abu Dhabi’s G42 with the purpose to extend AI growth and international enlargement. Then later in Could, Microsoft and G42 introduced a $1 Billion funding to spend on totally different tasks in Kenya together with establishing of a geothermal-powered AI knowledge middle.

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Beneath this deal, G42 will lead the preliminary funding together with different stakeholders to develop a state-of-the-art knowledge middle to run Microsoft Azure, the cloud computing platform of the tech large.The EcoCloud-G42 Mega Information Heart is deliberate to have preliminary capability of 100 MW, however with the potential to construct as much as 1 Gigawatt. To this finish, the businesses has began to coach an open-source, multilingual AI mannequin in English and Swahili.

The deal was mounted coincidentally on the identical time when the U.S. President Joe Biden and Kenyan President William Ruto met throughout a summit assembly within the states. 

Why was Kenya chosen to arrange the info middle?

In keeping with an announcement launched by G42, the undertaking goals to “energy the untapped potential of Kenya’s 10 gigawatts of geothermal power, heralding a brand new period of inexperienced energy-driven digital infrastructure.”

Kenya has been chosen as a strategic location for the undertaking because of it being a geothermal wealthy area and the stakeholders intend to leverage earth’s warmth to chop fossil gasoline dependence and carbon emission. The undertaking will even speed up the financial progress in Kenya and the East Africa area by turning the info centre into an instance of Kenya’s digital transformation.

Via this cooperation, companies of all sizes will be capable of benefit from cloud computing and synthetic intelligence (AI) whereas ensuring the expertise they use complies with the best security and safety necessities globally. In keeping with Sheikh Tahnoon bin Zayed Ai Nahyan, the Chairman of G42 “The partnership will even help the event of a talented and various AI workforce and expertise pool that can drive innovation and competitiveness for the UAE and broader area with the funding of $1B in a growth fund for builders.”

Why is the US involved over the AI knowledge middle?

Regardless of preliminary enthusiasm for the funding deal, the U.S. authorities has developed chilly toes, of late. In keeping with geo-political specialists, the proximity of UAE with China and the safety loopholes in Microsoft are primary causes of concern for the U.S. authorities that’s now rising more and more skeptical of the undertaking. 

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Through the covid pandemic, G42 had established ‘’Hayat Biotech”- a three way partnership with Beijing primarily based Sinopharm firm to develop vaccines for its residents. In keeping with information studies, a significant situation for the info middle undertaking to get accepted was that G42 would minimize ties with China primarily based firms. Nonetheless, as per U.S. officers, will probably be tough for G42 to chop 100% ties with China because of geo-political challenges. The U.S. can also be involved over alleged misuse of technical assets and AI expertise that they may share with the nations. 

Conclusion

It goes with out saying that the upcoming undertaking in Kenya holds huge potential for the financial turnaround of not simply the nation however all the East Africa area. The undertaking may set a benchmark for utilizing renewable power in digital infrastructure, thereby massively chopping carbon emission and different operational prices. Nonetheless, the geopolitical complexities may very nicely jeopardize the prospects of this undertaking if the U.S. continues to stay skeptical of China’s rising presence and UAE’s integrity in using futuristic expertise.

For Meta: An upcoming AI knowledge middle in Kenya developed by Microsoft and UAE primarily based G42 has raised alarms within the U.S. over nationwide safety threats. 



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Contents
What’s the Microsoft-G42-Kenya partnership?Why was Kenya chosen to arrange the info middle?Why is the US involved over the AI knowledge middle?Conclusion
TAGGED: alarmed, billion, Center, data, deal, Kenya
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