Can Kenya’s AI ambitions coexist with Naivasha’s water needs?
A proposed Microsoft-G42 data centre in Olkaria, Kenya, has stalled due to concerns about available power capacity. The project's water demand raises questions about adding pressure to already competing needs in the region.
Intelligence analysis by Llama

The proposed data centre's water demand has sparked concerns about its impact on the already water-scarce region of Naivasha, Kenya. The project's water consumption and cooling technology remain unclear, and residents are worried about the potential effects on their daily lives.
Imagine you live in a place where water is very scarce. You have to walk for miles to get water, and your animals are struggling too. Now, imagine a big company wants to build a huge data centre that will use a lot of water. That's what's happening in Naivasha, Kenya, and people are worried about how it will affect their daily lives.
Analysis
Water Scarcity in Naivasha
The region of Naivasha, Kenya, is heavily dependent on groundwater, and declining water flows are adding to the pressure. The proposed data centre's water demand has sparked concerns about its impact on the already water-scarce region. Residents are worried about the potential effects on their daily lives, including the loss of reliable piped supplies and the need to rely on water vendors.
The Data Centre's Water Demand
The amount of water the proposed Microsoft-G42 facility itself would require remains unclear. The project announcement provides no projected consumption figure. Existing industrial use offers some context, with 195,165 cubic metres of water abstracted from Lake Naivasha in July 2023 for domestic and commercial uses at Olkaria and for operations and domestic use at Eburru. Of that total, 153,918 cubic metres were used for commercial operations at Olkaria.
The Importance of Transparency
Transparency and an assessment of the project's cumulative impact on water resources would be important. Residents are calling for water-efficient or water-free cooling, water recycling, and the use of treated wastewater, as well as sustainable abstraction limits and community involvement in monitoring. The region is heavily dependent on groundwater, and declining water flows are adding to the pressure. The proposed data centre's water demand has sparked concerns about its impact on the already water-scarce region.
Key points
- The proposed Microsoft-G42 data centre in Olkaria, Kenya, has stalled due to concerns about available power capacity.
- The project's water demand raises questions about adding pressure to already competing needs in the region.
- Residents are worried about the potential effects on their daily lives, including the loss of reliable piped supplies and the need to rely on water vendors.
- The amount of water the proposed data centre would require remains unclear.
- Existing industrial use offers some context, with 195,165 cubic metres of water abstracted from Lake Naivasha in July 2023 for domestic and commercial uses at Olkaria and for operations and domestic use at Eburru.
If the proposed data centre is designed with water conservation in mind, it could bring jobs and investment to the region while minimizing its impact on the environment. The companies involved, Microsoft and G42, have stated that the data centre will run entirely on renewable geothermal energy and incorporate water conservation technology.
If the proposed data centre is not designed with water conservation in mind, it could exacerbate the region's water scarcity and have a negative impact on the livelihoods of residents who depend on the lake for their daily needs. The region is already heavily dependent on groundwater, and declining water flows are adding to the pressure.



