Greek firm Amaco plans Sh194bn AI data centre

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Greek multinational Amaco Energy Group plans to build a $1.5 billion (Sh194 billion) artificial intelligence (AI) data centre in Mombasa to tap East Africa’s growing demand for computing infrastructure.

Amaco CEO Theodore Theodoropoulos is in Kenya for talks with government officials for approval of the project, which is expected to combine a large data-centre facility with an independent power-generation system.

The company said the planned facility is an independently powered centre that will not rely on Kenya’s electricity grid.

It comes amid growing interest in Kenya as a location for multinationals to set up data centre infrastructure, driven by rising demand for cloud computing, AI, digital finance, and other internet services.

“A key objective of Dr Theodoropoulos's visit to Nairobi is to explore the development of one of the world's largest AI data-centre facilities in Kenya, designed as a fully integrated and independently powered installation, without reliance on the national electricity grid or conventional natural-gas infrastructure,” an Amaco spokesperson told the Business Daily via email.

“[It is] concerning a proposed $1.5 billion smart-power and AI data-centre project in Mombasa by Amaco Energy Group.”

Data centres are the main infrastructure powering AI by providing high computing power, specialised computer hardware, and the large storage needed to train and deploy complex language models.

Kenya has only two AI-capable data centres against South Africa’s five and Nigeria’s one, according to Data Centre Map, a global data centre directory.

While AI promises to be a powerful tool in boosting productivity, Africa is being left behind because it lacks digital infrastructure, including connectivity like fast fibre-optic broadband.

The lack of connectivity is compounded by a shortage of the heavy-duty data centres needed to crunch the masses of data required to train large language models and run the AI-powered applications that could boost Africa’s economic growth.

Kenya has been wooing global tech investors to build AI-capable data centres in the race to close the growing infrastructure gap.

Currently, the construction of a Sh129.5 billion ($1 billion) Microsoft data centre in Olkaria, Nakuru County, has been delayed after Kenya disagreed with the US tech giant over a request for guaranteed uptake of cloud capacity.

In May 2024, Microsoft partnered with UAE-based AI firm G42 to invest in the mega data centre as part of its efforts to expand cloud computing services in East Africa.

But the upgrade of the facility to require 1,000 megawatts (MW) of power from the initial 60MW for regional use has spooked Kenya, which reckons it lacks electricity capacity to support the project.

Data centres consume immense power because they operate thousands of servers to process and store data. They also require large volumes of water for cooling systems that prevent overheating.

Large data centres often consume as much electricity as a small city.

Amaco said the Mombasa project will use an offshore liquefied natural gas-powered electricity supply to power the data centre without straining local electrical grids.

The energy system, dubbed Hercules, processes natural gas and combines electricity generation and cooling systems into a single platform.

“In addition, the Hercules concept has the potential to contribute significant additional power-generation capacity to support Kenya’s broader energy requirements,” the Greek firm said.

Amaco has not disclosed the facility’s capacity and construction timeline.

Other major companies that operate smaller-scale data centres in the country include EADC Liquid, iColo, Africa Data Centre, COMTEC, Access, Safaricom, MTN Business, and Telkom Kenya.

Reporting originally appeared via Business Daily. Read the full source for additional context.