Airtel Kenya begins building East Africa’s largest 44MW data centre at Tatu City

Airtel Kenya has officially broken ground on what will become East Africa’s largest data centre, marking a pivotal moment in the region’s digital transformation journey. The 44-megawatt facility at Tatu City represents a $150 million investment by Airtel Africa through its data centre arm, Nxtra by Airtel Africa, designed to meet the latest infrastructure requirements for cloud computing and artificial intelligence services.

This groundbreaking ceremony, held on September 9, 2025, brings together government officials, industry leaders, and technology innovators to witness the launch of a project that will fundamentally reshape Kenya’s position as a regional technology hub. The facility promises to deliver unprecedented capabilities with 99.999% uptime, multiple redundant fiber paths, and advanced security systems that will serve hyperscalers, enterprises, and government agencies across the continent.

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Strategic Location and Government Support

Tatu City: Kenya’s Emerging Tech Hub

The choice of Tatu City as the location for this massive data centre reflects careful strategic planning. Tatu City, Kenya’s mixed-use Special Economic Zone, provides the ideal environment for large-scale digital infrastructure development with its modern amenities, strategic location, and supportive regulatory framework.

The facility will house next-generation servers and high-density GPU-ready racks, positioning it at the forefront of emerging technologies including artificial intelligence and machine learning workloads. The infrastructure is designed to support the exponential growth of data services across Africa, democratizing access to cloud services and advanced computing capabilities.

Government Alignment with Digital Vision

Cabinet Secretary for the Ministry of ICT and Digital Economy, Hon. William Kabogo, who graced the groundbreaking ceremony, emphasized the project’s perfect alignment with Kenya’s digital agenda. “The scale and quality of this facility will firmly place Kenya on the map as a trusted host for global and regional digital infrastructure,” Hon. Kabogo stated. “Above all, it is a reflection of the confidence in Kenya’s economy, policies and our vision for a digitally enabled society.”

The project aligns seamlessly with Kenya’s Vision 2030 development agenda and the National Digital Master Plan 2022-2032, representing a tangible manifestation of the country’s digital transformation strategy. The government’s supportive stance is further evidenced by favorable policies including the Kenya Cloud Policy 2024, which creates an enabling environment for data centre investments.

Technical Specifications and Advanced Infrastructure

Power Capacity and Phased Development

The Nxtra Data Centre will deliver an impressive 44MW total capacity, developed in two strategic phases of 22MW each. This phased approach allows for measured growth while ensuring that each stage meets the highest international standards for reliability and performance. The facility is expected to achieve full operational status by the first quarter of 2027.

The power infrastructure represents a significant leap forward for the region, designed to handle the most demanding computational workloads including high-performance computing, artificial intelligence processing, and large-scale cloud deployments. The facility will feature advanced cooling systems optimized for energy efficiency, addressing one of the critical challenges in tropical data centre operations.

Cutting-Edge Technology Integration

The data centre will incorporate state-of-the-art technology features that position it among the world’s most advanced facilities:

Advanced Security Systems: The facility will implement comprehensive seven-layer security protocols, ensuring the highest levels of physical and digital protection for hosted data and infrastructure.

Multiple Redundant Fiber Paths: Connectivity redundancy through multiple fiber paths ensures uninterrupted service delivery and protects against single points of failure that could affect operations.

GPU-Ready High-Density Racks: Purpose-built infrastructure to support graphics processing units and other specialized computing hardware essential for AI workloads and advanced analytics.

99.999% Uptime Guarantee: This translates to less than 5.26 minutes of downtime per year, meeting the most stringent enterprise and government requirements for service availability.

Market Context and Industry Growth

Kenya’s Booming Data Centre Market

Kenya’s data centre market is experiencing unprecedented growth, with the market projected to expand from USD 509.01 million in 2024 to USD 733.34 million by 2032, representing a compound annual growth rate (CAGR) of 4.67%. However, other projections suggest even more robust growth, with some estimates indicating the market could reach USD 440 million by 2029, growing at a CAGR of 11.66%.

This growth is driven by several key factors including the rapid adoption of digital services across sectors like finance, healthcare, and education. Government initiatives such as the National Optic Fiber Backbone Infrastructure (NOFBI) are enhancing connectivity and reducing internet costs, further fueling demand for data storage and processing services.

The increasing smartphone penetration and mobile internet usage are contributing to higher data consumption. According to DataReportal, 68.8 million cellular mobile connections were active in Kenya at the beginning of 2025, creating massive demand for data processing and storage infrastructure.

Regional and Continental Context

The broader African data centre market presents an even more compelling growth story. The Africa Data Center Market was valued at USD 3.49 billion in 2024 and is projected to reach USD 6.81 billion by 2030, rising at a CAGR of 11.79%. Kenya plays a crucial role in this expansion, with the country hosting 19 data centre facilities as of mid-2025, trailing only South Africa with 56 facilities and ahead of Nigeria with 17.

The construction market specifically shows even more dramatic growth potential, with the Africa Data Center Construction Market valued at USD 1.26 billion in 2024 and projected to reach USD 3.06 billion by 2030, rising at a CAGR of 15.94%.

Economic Impact and Job Creation

Direct Economic Benefits

The economic implications of this investment extend far beyond the initial $150 million capital expenditure. Airtel Kenya Managing Director Ashish Malhotra noted that this represents “about 18 billion shillings” and constitutes “a big, big investment from our side.” However, as Nxtra Africa CEO Yashnath Issur clarified, this figure covers the core infrastructure only, with additional investments expected across the broader ecosystem.

Construction is set to create hundreds of direct and indirect jobs, providing immediate economic stimulus to the local economy. More importantly, the facility will generate numerous permanent technical and operational roles once it becomes operational, requiring skilled professionals in data centre management, cybersecurity, network operations, and related fields.

Local Supply Chain Integration

Airtel’s commitment to working with local suppliers and contractors represents a significant economic multiplier effect. This approach will inject millions into the Kenyan economy while supporting the growth of the country’s technology ecosystem and enabling Kenyan businesses to compete on a global scale.

The project aligns with government policies promoting local content and capacity building, ensuring that the benefits of this major infrastructure investment flow broadly through the economy rather than being captured by international contractors and suppliers alone.

Strategic Business Implications

Positioning Kenya as a Regional Hub

Ashish Malhotra emphasized that this project “goes beyond infrastructure” and “reinforces Kenya’s continuing leadership in Africa’s digital revolution by improving data sovereignty, security, and efficiency.” Once operational, the facility is expected to attract global technology players, create jobs, lower the cost of digital services, and make it easier for Kenyan companies to grow.

The facility positions Kenya to strengthen its place as a regional hub for technology and innovation, potentially attracting additional investments from major cloud providers and technology companies seeking to establish African operations. This could create a virtuous cycle where improved infrastructure attracts more investment, which in turn drives further infrastructure development.

Data Sovereignty and Security Benefits

The establishment of this large-scale data centre addresses critical concerns about data sovereignty that have become increasingly important across Africa. By providing local, secure, and reliable data processing and storage capabilities, the facility enables organizations to keep sensitive data within national borders while maintaining access to world-class infrastructure and services.

This capability is particularly important for government agencies, financial institutions, and healthcare organizations that handle sensitive data and must comply with increasingly stringent data protection regulations. The facility’s advanced security systems and compliance capabilities make it suitable for the most demanding regulatory environments.

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Airtel’s Broader Digital Strategy

Nxtra by Airtel Africa’s Continental Vision

Nxtra Africa CEO Yashnath Issur described the investment as part of Airtel Group’s long-term commitment to Africa’s digital future. “By building specialized data center capacity that meets long term digital growth requirement in main markets, we are positioning Nxtra Africa as the Go To partner for cloud and AI workload hosting,” he stated.

The company’s vision extends beyond just providing infrastructure to actively empowering businesses, supporting governments, and unlocking new opportunities for communities across the region. This holistic approach recognizes that data centres are critical enablers of broader economic and social development.

Technology and Sustainability Focus

“Nxtra by Airtel is being built to the highest global standards, ensuring reliability, scalability, and energy efficiency,” Issur emphasized. “Beyond capacity, our focus is on sustainability and resilience, enabling customers to fully leverage next-generation technologies in a secure environment.”

This focus on sustainability is increasingly important as organizations seek to reduce their environmental footprint while expanding their digital capabilities. The facility’s energy-efficient design and potential integration with Kenya’s renewable energy resources, including geothermal power, position it as a model for sustainable data centre development across Africa.

Home Fiber Expansion Plans

Complementing the data centre investment, Airtel is preparing to launch home fiber internet services in Kenya, marking the company’s entry into the competitive broadband market. This strategic move would position Airtel to compete directly with established players like Safaricom, Zuku, and JTL while leveraging the enhanced infrastructure capabilities that the new data centre will provide.

The fiber rollout represents a natural extension of Airtel’s infrastructure investments, creating synergies between backbone capacity and last-mile connectivity. This integrated approach could provide competitive advantages in service quality and pricing while maximizing the return on infrastructure investments.

Competitive Landscape and Market Positioning

Major Players and Market Dynamics

The Kenyan data centre market features both established local players and international operators. Key investors in the market include Africa Data Centres, Digital Realty, IXAFRICA DATA CENTRE, Safaricom, and Telkom Kenya, with new entrants including Airtel Africa, Cloudoon, and Olkaria EcoCloud Data Centre.

The market has witnessed significant investments from both local and foreign operators, with the rising adoption of cloud-based services propelling growth in both retail and wholesale colocation services. International giants like Amazon Web Services (AWS) and Microsoft Azure are also establishing presence in Kenya to serve the broader East African market, further intensifying competition.

Special Economic Zones and Investment Incentives

The Kenyan government has actively promoted Special Economic Zones (SEZs) to stimulate economic growth and provide favorable business conditions for data centre operators. In October 2023, the government decided to add five more SEZs: Sagana, Thika, Nakuru, Eldoret, and Busia.

These zones offer significant incentives including tax breaks and streamlined regulations, making them attractive locations for data centre investments. The government provides tax incentives for investments in special economic zones, including around 10% corporate tax exemption for the first ten years, and over 15% exemption after the ten years.

Technology Trends and Future Opportunities

Artificial Intelligence and Machine Learning Infrastructure

The facility’s GPU-ready infrastructure positions it to capitalize on the growing demand for AI and machine learning workloads across Africa. As organizations increasingly adopt AI technologies for applications ranging from agricultural optimization to financial services, the demand for specialized computing infrastructure continues to grow.

Africa currently accounts for around 2.5% of the global AI market, but this represents significant growth potential as local capabilities develop and costs decrease. The availability of local, high-performance infrastructure could accelerate AI adoption across various sectors.

Smart City and IoT Applications

Kenya’s smart city initiatives, including the ongoing Konza Technopolis project, create additional demand for data centre services. These projects require reliable, high-performance infrastructure to support IoT devices, real-time analytics, and integrated city management systems.

The facility’s advanced capabilities make it well-suited to support these next-generation applications while providing the scalability needed as smart city implementations expand across the region.

Regulatory Environment and Compliance

Data Protection and Privacy Regulations

Kenya’s data protection framework continues to evolve, with regulations increasingly requiring local storage of sensitive data. This regulatory environment drives demand for local data centre capacity while ensuring that data remains under national jurisdiction and control.

The Communications Authority of Kenya (CA) has affirmed its support for the project, with Peter Ikumilu, Assistant Director Compliance at CA, highlighting the facility’s role in meeting surging demand from mobile, e-commerce, and cloud service growth. “This modern data centre will provide the necessary foundation to absorb this surge, supporting both regulatory functions and industry innovation,” he stated.

International Standards and Certifications

The facility’s commitment to meeting the highest global standards positions it to serve international clients while maintaining compliance with local regulations. This dual capability is essential for attracting global cloud providers and multinational corporations seeking African operations bases.

Future Implications and Industry Outlook

Catalyzing Digital Transformation

The establishment of East Africa’s largest data centre represents more than just infrastructure development; it signals Kenya’s emergence as a serious contender in the global digital economy. The facility’s capabilities will enable local businesses to access world-class computing resources without the latency and cost penalties associated with overseas infrastructure.

This democratization of advanced computing capabilities could accelerate innovation across sectors, from fintech startups requiring high-performance computing for algorithmic trading to agricultural companies using AI for crop optimization and supply chain management.

Regional Integration and Connectivity

The data centre’s strategic location and advanced connectivity capabilities position it to serve not just Kenya but the broader East African region. As regional integration deepens and cross-border digital services expand, facilities like this become critical infrastructure for economic integration and growth.

The facility’s multiple fiber paths and redundant connectivity ensure that it can serve as a reliable hub for regional digital services, potentially hosting content delivery networks, regional cloud services, and cross-border data processing applications.

Sustainability and Environmental Considerations

As environmental concerns become increasingly important in infrastructure development, the facility’s focus on energy efficiency and potential integration with renewable energy sources positions it as a model for sustainable development. Kenya’s abundant geothermal and solar resources provide opportunities for powering data centres with clean energy, potentially making the facility carbon-neutral or even carbon-negative.

This sustainability focus could become a competitive advantage as organizations increasingly factor environmental impact into their technology procurement decisions.

Conclusion: Transforming Kenya’s Digital Landscape

The groundbreaking of East Africa’s largest data centre represents a watershed moment in Kenya’s digital transformation journey. This $150 million investment by Airtel Africa demonstrates unprecedented confidence in Kenya’s potential as a regional technology hub while providing the infrastructure foundation needed to support the country’s digital ambitions.

The facility’s advanced capabilities, from 99.999% uptime guarantees to GPU-ready infrastructure, position Kenya to compete globally while serving the growing needs of local businesses and government agencies. The project’s alignment with government policy and its focus on local economic impact ensure that the benefits will be broadly shared across the economy.

As the facility progresses toward its 2027 operational target, it will likely catalyze additional investments in Kenya’s technology sector while positioning the country as an attractive destination for global technology companies seeking African operations bases. The combination of world-class infrastructure, supportive government policies, and growing market demand creates compelling conditions for sustained growth in Kenya’s digital economy.

The success of this project could serve as a template for similar investments across Africa, contributing to the continent’s broader digital transformation and economic development goals. As Kenya continues to strengthen its position as the “Silicon Savannah,” facilities like the Nxtra Data Centre provide the critical infrastructure foundation upon which the country’s digital future will be built.

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Photo source: Google

By: Montel Kamau

Serrari Financial Analyst

10th September, 2025