By Africa Links 24
Published on 2024-03-12 10:19:02
Kenya’s geothermal sector is experiencing significant growth, as demonstrated by the recent partnership between local data center company EcoCloud and Abu Dhabi-based technology firm G42. The two companies have signed a memorandum of understanding to build a data center that will be powered entirely by geothermal energy. This milestone marks a significant step forward in the country’s renewable energy goals.
The planned capacity of the new data center is 100 MW, with the potential to expand to 1 GW in the future. Data centers are known for their high electricity demands, especially with the increasing use of AI-based applications. Ensuring a reliable and uninterrupted power supply is crucial for their operations, making the reliance on renewable energy sources like geothermal power particularly appealing.
The environmental impact of data centers has become a contentious issue globally, with operators facing pressure to adopt green solutions. Geothermal energy, derived from the Earth’s natural heat sources, offers a sustainable and continuous power supply that can help address these concerns. Unlike solar or wind power, geothermal energy provides a consistent ‘baseload’ supply of electricity.
During the signing ceremony, EcoCloud’s CEO emphasized the importance of harnessing geothermal energy to meet data center needs while promoting eco-friendly infrastructure. The partnership between the two companies highlights their commitment to a greener and more sustainable future for Africa and beyond.
Kenya has emerged as a leader in geothermal energy development in Africa, with several large-scale power stations already operational. The country currently produces 6.5 Terrawatt hours (TWh) of electricity from geothermal sources, contributing significantly to its total power supply. Despite these achievements, there are still vast untapped reserves of geothermal energy that could further enhance Kenya’s renewable energy capacity.
Exploiting these resources often requires significant capital investment for geothermal drilling campaigns. To make such investments financially viable, industrial off-takers, like data center operators, play a crucial role. These off-takers can enter into long-term contracts for a reliable power supply, while any surplus electricity can be sold to the national grid or other industrial customers.
Geothermal energy is used for various applications globally, including power generation, heating, and cooling. In Kenya, companies are exploring innovative uses of geothermal power, such as capturing carbon dioxide from the atmosphere. The country’s power utility, GenKen, is also seeking anchor tenants for industrial parks powered by geothermal sources.
The involvement of G42 in the geothermal-powered data center project underscores the growing interest of investors from the Gulf region in Africa. Last year, African countries received significant greenfield investment pledges from Gulf Cooperation Council countries, highlighting the potential for further collaboration and partnerships in the renewable energy sector.
In conclusion, Kenya’s move towards geothermal energy for data centers not only addresses the growing energy needs of these facilities but also contributes to sustainable development and environmental conservation. The partnership between EcoCloud and G42 sets a new standard for eco-friendly infrastructure and underscores the importance of renewable energy in driving Africa’s future growth and development.
