Microsoft’s one-billion-dollar AI data center project in Kenya has stopped for now because of major power problems. The project started in 2024 and they planned to build it near Olkaria using power from hot underground water to create Microsoft’s first cloud computing area in East Africa. Kenya’s President William Ruto said that powering the whole project would require turning off electricity for about half the country, since Kenya’s power grid can only generate around 3,000 megawatts. Talks stopped due to disagreements about power supply promises and whether the country has sufficient infrastructure ready. Government officials say the project is not canceled and they are still discussing making it smaller or changing the plan.