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Opinion

Why Is Olkaria’s Geothermal Power Not Yet Winning Kenya the AI Data-Centre Race?

KenGen has built Olkaria into one of the world’s largest geothermal power hubs, but the stalled $1 billion Microsoft-G42 data-centre project exposed a problem that now requires political commitment, regulatory coordination and a financing model built for hyperscale demand. Kenya must find a way to deliver hundreds of megawatts quickly, finance dedicated transmission and make technology buyers carry the cost without pushing more risk onto the Treasury or household power bills.

By Duncun Motanya · Policy & Regulation · 9 min read · 16 October 2026

Why Is Olkaria’s Geothermal Power Not Yet Winning Kenya the AI Data-Centre Race?

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Behaviour beforeAdoption

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The rails, standards and identity systems that determine who can build, connect and compete.

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Draft provisions and appointments that change the probability of what comes next.

Friction beforeFailure

Where consumers compensate for a system that technically works but practically disappoints.

Power beforePublicity

Who gains control over data, pricing, identity and access when a technical change lands.

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