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Olkaria
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Nation / PlaceKE

Olkaria

Geothermal field in Kenya's Rift Valley, chosen for a stalled Microsoft-G42 data-centre campus.

Kenya halted the $1 billion Microsoft-G42 campus at Olkaria in May 2026, as a 1 GW site would have needed about a third of national generating capacity; by June a refused capacity-payment guarantee had stalled it too.

Last refreshed: 18 October 2026 · Appears in 1 active topic

Key Question

With the May deadline lapsed and guarantee declined, is the Olkaria campus finished?

Timeline for Olkaria

#17 20 Oct
#16 8 Oct
#7 14 Jun

Kenya's AI campus turned on a guarantee

Data Centres: Boom and Backlash
#6 6 May

Remained suspended at the 1 GW threshold that would draw a third of Kenya's installed capacity

Data Centres: Boom and Backlash: Kenya halts $1bn Olkaria over power
View full timeline →

Background

Olkaria is Kenya's main geothermal field, in the Great Rift Valley just south of Lake Naivasha and within Hell's Gate National Park, about 120 km from Nairobi. Most of its plants, including Olkaria I and II, belong to KenGen, the Kenya Electricity Generating Company; Olkaria III is owned by a subsidiary of Ormat Technologies. Geothermal plants run year-round, unlike solar or wind, which is why Microsoft and G42 chose the field for a $1 billion data-centre campus announced in May 2024.

Kenya's government halted that campus in early May 2026. At its full 1 GW, the site would have drawn a third of the country's installed capacity of about 3 GW, and President Ruto said building it would mean switching off half the country. By mid-June the first-phase target of May 2026 had lapsed with no ground broken. The consortium had also asked Kenya Power and Lighting Company for a sovereign guarantee to pay for contracted power whether or not the campus drew it, and the government declined. Financing remained unresolved and no new construction date had been set.

The stalled campus is now the reference case for African AI projects, where one hyperscale site can equal a large share of a National Grid. A 20 MW AI site planned near Casablanca in October 2026 still had its permits and grid connection to win.

Common Questions

Reference

Where is the Olkaria geothermal field in Kenya?
Olkaria is in Kenya's Rift Valley, near Naivasha, southwest of Nairobi. It is operated by KenGen and produces approximately 800 MW of installed geothermal capacity.Source: KenGen / geothermal data
Has construction started on the Olkaria data centre?
No. By June 2026 the first-phase May 2026 target had lapsed with no ground broken, financing was unresolved and no new construction date had been set.Source: Lowdown data-centres coverage, June 2026
Why was the Microsoft G42 data centre in Kenya suspended?
Kenya's government halted it because the full 1 GW campus would draw a third of the country's roughly 3 GW installed capacity. Later reporting said the consortium also wanted a sovereign capacity-payment guarantee from Kenya Power, which the government declined.Source: Lowdown data-centres coverage, May and June 2026
How much of Kenya's electricity does the Olkaria campus need?
The full 1 GW Microsoft-G42 campus target would require approximately a third of Kenya's installed generation capacity of roughly 3 GW, according to government officials. President Ruto said it would mean switching off half the country.Source: Kenyan government / President Ruto statement
Who runs the Olkaria geothermal plants?
KenGen owns most of the Olkaria plants, including Olkaria I and II. Olkaria III is owned by a subsidiary of Ormat Technologies.Source: Wikipedia, Olkaria
Source Material

Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Updated 18 October 2026. Editorial standards.