Kenya’s Ksh127 billion technology deal with the United States is currently on the verge of collapsing after a section of US officials expressed worry that the agreement could imperil the country’s national security.
During President William Ruto’s state visit to the United States in late May this year, Kenya signed a deal with President Joe Biden’s administration for the establishment of a data centre.
According to the agreement, the data centre was to be built in Olkaria by an American technology company, Microsoft, jointly with another multinational company based in the United Arab Emirates (UAE).
The proposed geothermal-powered data centre was set to harness renewable energy for technological advancements including AI projects.
However, US officials recently expressed doubt over the partnership, claiming the sharing of resources could pose national security risks for them since some of the companies providing materials for Microsoft to establish the data centre had been sanctioned by the US government.
Another critical factor is the proximity of the UAE to China whom the US regards as a geopolitical rival and the close ties between UAE and China could be difficult to stop.
According to US officials, it will be difficult for the UAE to cut 100 per cent ties with China and that the latter would take advantage to misuse the resources.
Nonetheless, it is yet to be known whether the US government would be proceeding with the deal or revoking it in totality.
During the announcement of the project in May, Microsoft stated the establishment of the data centre would provide digital jobs to Kenyans through partnerships with various local organizations.
"To help accelerate digital adoption, Microsoft and G42 will collaborate with a wide array of local partners to provide a range of digital and AI skills across Kenyan society and create a future-ready workforce," Microsoft announced.
Kenya is also set to utilize the new data centre and cloud services for governmental and citizen services.
While commenting on the imminent deal, President Ruto noted that the move would offer every citizen the opportunity to thrive in the global digital landscape.