A Greek company is seeking to invest KSh194 billion ($1.5 billion) in a data centre in Mombasa as demand for digital infrastructure in Kenya continues to grow.
Amaco Energy Group Chief Executive Officer Theodore Theodoropoulos is currently in Kenya seeking government approval for the proposed project.
The planned facility is expected to have its own power generation and cooling systems, meaning it would not depend on electricity from the national grid to run its operations.
According to the proposal, Amaco plans to use an offshore liquefied natural gas (LNG)-powered system known as Hercules to generate electricity for the data centre.
The company says the system could produce more electricity than the facility needs, with the surplus potentially being supplied to the national grid.
The proposed investment comes at a time when Kenya is trying to position itself as a regional hub for digital services, while also dealing with the high power demands of large data centres.
AI and cloud computing facilities require significant amounts of electricity to operate, putting additional pressure on the country’s power infrastructure.
Power demand a growing concern
The issue of electricity supply has already affected plans for other major data centre projects in Kenya.
The proposed Microsoft-G42 data centre at Olkaria was initially announced as a KSh129.4 billion ($1 billion) investment.
However, the project has faced delays, partly due to its power requirements. Its projected electricity demand was later revised from 60MW to 1,000MW, which is roughly a third of Kenya’s total installed generation capacity.
Amaco’s plan to generate its own electricity could therefore reduce its reliance on the national grid if the project receives the necessary approvals.
Kenya is meanwhile investing in new transmission infrastructure to improve the capacity and reliability of the national power network.
The Kenya Electricity Transmission Company (KETRACO) has entered into a KSh40.4 billion ($312 million) partnership with Africa50 and Power Grid Corporation of India to develop new high-voltage transmission lines.
The government has also identified transmission projects worth KSh71.2 billion ($550 million), including the Kwale-Shimoni 220kV and Kiambere-Maua-Isiolo 220kV lines.
More firms eye Kenya’s digital market
Amaco’s proposed investment comes as other international companies also look to expand their digital infrastructure operations in Kenya.
Chinese digital infrastructure firm Guodong Group is planning to invest up to KSh38.8 billion ($300 million) in the country.
The company is targeting data centres, fibre networks, cloud infrastructure, telecommunications towers and smart city projects.
Guodong is also considering setting up its African headquarters in Kenya.
The investments come as the government pushes ahead with its Digital Superhighway programme, which targets the installation of about 100,000 kilometres of fibre optic cable across the country.
For Mombasa, the proposed Amaco facility could add to the coastal city’s growing role in Kenya’s technology and connectivity infrastructure, although the project still requires government approval before construction can begin.