Kenya's AI ambitions clash with Naivasha's water crisis

Local communities already experience water shortages affecting families, livestock, farms and schools; further industrial water demand could exacerbate existing scarcity and displacement pressures.
We are competing with multibillion-dollar companies for water
A pastoralist expresses the fear that local communities will lose access to water as industrial demand grows.
Mark

Why does a data centre project in Kenya matter to people who just want to read the news?

Mimi

Because it's a collision between two things Kenya desperately wants—tech investment and survival. The country needs jobs and economic growth. But it also needs water. This project forces the question: can you have both?

Mark

The project is stalled anyway. Doesn't that solve the problem?

Mimi

It pauses it. But the real issue is that no one knows what the water demand would be. The companies never said. So even though the project is stuck on power capacity, the water question never got answered. That uncertainty is what's frightening people.

Mark

What's the actual water situation in Naivasha right now?

Mimi

It's already stressed. The lake nearly dried up in 2010. People have lost piped water access. Livestock walk kilometers. Climate is getting harsher. And Kenya as a whole is approaching water scarcity thresholds. Adding a massive industrial user to that picture feels reckless without knowing the numbers.

Mark

But couldn't the data centre bring benefits—jobs, monitoring technology, investment?

Mimi

Yes. Some locals see that. A geologist mentioned the centre would have included monitoring equipment for the lake. That's valuable. But it only works if the water demand doesn't overwhelm the system. You can't have a model for sustainable development if it drains the lake.

Mark

So what would need to happen for this to work?

Mimi

Transparency, first. Disclose the water consumption figures. Then real assessment of cumulative impact—not just this project, but all the competing demands. Then commitment to water-efficient cooling, recycling, treated wastewater. And communities need a seat at the table, not just reassurance after the fact.

Mark

Is there any chance this actually happens?

Mimi

The project is stalled. Regulators exist but wouldn't comment. Companies wouldn't comment. Right now, it's a question without answers, and that silence is its own kind of answer.

  • A $1 billion data centre campus near Olkaria has been frozen since May 2026, but the power dispute that stalled it has exposed a deeper, unresolved crisis: no one has disclosed how much water the facility would actually consume.
  • Residents near the lake already buy water from vendors, walk livestock for kilometres to find drink, and watch schools struggle — and they fear that industrial-scale demand will push them further to the margins.
  • Lake Naivasha has been here before: in 2010, over-abstraction nearly dried it entirely, and local voices are warning that history is poised to repeat itself under the weight of new investment.
  • Conservation groups and community associations are calling for transparency on water sourcing, cooling technology, and recycling plans — but Microsoft, G42, KenGen, and Kenyan regulators have all declined to answer.
  • Kenya's freshwater availability per person is already below the UN scarcity threshold and is projected to shrink further by 2030, making this stalled project a live test of whether tech investment and environmental survival can be reconciled.

On the shores of Lake Naivasha in Kenya's Rift Valley, a stalled billion-dollar data centre venture has surfaced a tension as old as development itself: who holds claim to a diminishing commons. The Microsoft-G42 project, paused since May 2026 over power concerns, has left unanswered a quieter but more enduring question about water — a resource already stretched thin by population, agriculture, and a shifting climate. With Kenya projected to fall below critical freshwater thresholds by 2030, the silence from investors and regulators alike speaks as loudly as any disclosure. What unfolds here may become a template, or a warning, for how the digital economy negotiates its thirst against the needs of those who have always depended on the land.

Naivasha has long been a lifeline — its freshwater sustaining farmers, pastoralists, tourists, and families across Kenya's Rift Valley for generations. But that lifeline has grown unreliable. Piped supplies have failed. Livestock walk kilometres to drink. Schools go without. Into this fragile landscape, a $1 billion data centre project announced by Microsoft and UAE-based AI company G42 has cast a long shadow — even as the project itself sits frozen.

The campus, planned for Olkaria on the lake's geothermal edge, was to run on renewable energy and eventually reach 1 gigawatt of capacity. But in May 2026 it stalled over power availability concerns. What remains unresolved — and undisclosed — is how much water such a facility would demand. Microsoft and G42 have spoken of conservation technology but offered no figures. KenGen, which operates the Olkaria complex, confirmed the project is still at the design stage and said nothing more. For communities already relying on water vendors and watching their animals suffer, the silence is its own kind of answer.

The lake is already under pressure from every direction: population growth, agricultural abstraction, climate variability, pollution, and ecosystem degradation all compete for the same shrinking resource. A conservation patrol leader welcomed the prospect of jobs but called urgently for transparency about water sourcing, cooling systems, and recycling plans. The head of the local riparian association pointed to 2010, when over-abstraction nearly emptied the lake entirely, as a precedent that could easily be repeated. Farmers and pastoralists alike see themselves as the likely losers in any contest with billion-dollar investors.

The numbers give weight to the fear. Kenya already sits below the UN's 1,000-cubic-metre-per-person freshwater scarcity threshold, and that figure is projected to fall further by 2030. Existing commercial operations at Olkaria already abstract more than 150,000 cubic metres from the lake each month — and that is before any data centre draws a single litre. A geologist offered a more hopeful reading, noting that the project's design included a resource monitoring centre that could guide sustainable development across the region. But with regulators unreachable and investors silent, hope remains theoretical.

"We are now competing with multibillion-dollar companies for water," one pastoralist said, "and we fear that we shall be the losers in the long run." Whether the project revives or not, the question it has raised will not go away: in a country running short of water, who gets to decide how what remains is shared.

Naivasha sits in Kenya's Rift Valley, a freshwater lake that has sustained farming, pastoralism, tourism, and domestic life for generations. But in recent years, the water that flows into it has become unreliable. Residents report losing piped supplies. Livestock walk kilometers to drink. Schools struggle. And now, a massive data centre project has thrown the region's water future into sharper focus—even as the project itself sits stalled.

In 2024, Microsoft and G42, an artificial intelligence company based in the United Arab Emirates, announced plans to build a data centre campus near Olkaria, a geothermal zone on Lake Naivasha's edge. The project was part of a $1 billion digital investment package for Kenya. The companies said it would run entirely on renewable geothermal power and eventually scale to as much as 1 gigawatt of capacity. But in May 2026, the project stalled over concerns about available power capacity. The uncertainty has left a different question hanging: what would such a facility mean for water in a region where people already go without?

Microsoft and G42 promised water conservation technology and renewable energy. They did not disclose how much water the data centre would actually consume. Kenya Electricity Generating Company, which operates the geothermal complex at Olkaria, said the project remains at the design stage and declined further comment. For residents, the silence is troubling. Musa Olorkedienye, who lives near Olkaria, told Al Jazeera that communities have already lost reliable water access from KenGen. "Currently, we are relying on water vendors to get water, our animals are walking for kilometres, and we fear things could get worse as demand for water rises," he said. Pastoralist Isaac Leshishi added that increasingly harsh weather is compounding the pressure.

The lake itself is under siege from multiple directions. Population growth, agriculture, water abstraction, climate variability, pollution, and ecosystem degradation all compete for the same finite resource. Grace Kimani, a patrol leader with Lake Naivasha and Oloiden, a conservation group, told Al Jazeera that the data centre project could bring jobs and investment—but its water demand raises concerns about adding pressure to already competing needs, especially during dry periods. She called for transparency about the project's expected water demand, its source, and its cooling technology. She also urged water-efficient or water-free cooling systems, water recycling, and the use of treated wastewater. Silas Wanjala of the Lake Naivasha Riparian Association pointed to history as a warning. In 2010, the lake nearly dried up due to over-abstraction. "This could be repeated due to high demand for water by these investors in Olkaria," he said.

The numbers underscore the stakes. According to the United Nations Food and Agriculture Organization, Kenya has about 527 cubic metres of freshwater available per person—below the 1,000-cubic-metre threshold for water scarcity. By 2030, that figure could fall to about 475 cubic metres per person. A KenGen environmental assessment recorded that in July 2023, 195,165 cubic metres of water were abstracted from Lake Naivasha for domestic and commercial uses at Olkaria and for operations at Eburru. Of that, 153,918 cubic metres went to commercial operations at Olkaria. Those figures relate to existing operations, not the proposed data centre. The project's own water footprint remains unknown.

Farmer Eskimos Kobia sees the competition extending across the entire community. Farmers, pastoralists, schools, and investors will all face greater pressure as demand increases. Absolom Mukhuusi of the Naivasha Professional Association acknowledged that the technology sector could bring jobs, infrastructure, and new businesses. But he warned: "Even as we welcome the investors, our biggest fear is what happens to our water bodies and communities as water is diverted to Olkaria for the heavy users."

Geologist Kenyatta Otieno offered a counterpoint. He recalled how large flower farms once stressed the lake's ecosystem before many scaled back or left. The proposed data centre, he said, would have included a resource centre to monitor lake levels and weather patterns—tools that could guide future development and riparian land zoning. "The centre being built with water conservation in mind would be futuristic as Naivasha is generally a water-scarce area. It would be a model for future development," he said. Kenya has regulators in place: the Water Resources Authority manages abstraction and permits, while the National Environment Management Authority oversees environmental assessments. But attempts to reach officials at either agency were unsuccessful, as were efforts to contact Microsoft, G42, or Kenyan government officials about the project's status and water requirements.

For now, the project's eventual scale, design, and water consumption remain unclear. Leshishi's words capture the anxiety: "We are now competing with the multibillion-dollar companies for water, and we fear that we shall be the losers in the long run."

Currently, we are relying on water vendors to get water, our animals are walking for kilometres, and we fear things could get worse as demand for water rises
— Musa Olorkedienye, Naivasha resident
Even as we welcome the investors, our biggest fear is what happens to our water bodies and communities as water is diverted to Olkaria for the heavy users
— Absolom Mukhuusi, Naivasha Professional Association
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