The summary says that this thing is supposed to be geothermal powered. So they just have the cart before the horse here. They need to set up the geothermal power plant first, then build the datacenter after the power plant is operational.
The geothermal plant already exists: https://www.globalelectricity....
Apparently, Microsoft was proposing to build the data center there and tap into the existing geothermal power, not build new geothermal power (the summary was a little confusing about that).
Yeah, that was confusing. But Kenya's president is almost certainly wrong. Here's why:
1. It is not numerically correct, assuming the numbers in the summary are accurate. The country has a surplus adequate to power the data center at somewhere around half to three-quarters capacity even at peak power use, and probably at full capacity for 99 days out of 100. So even if they built it at full capacity right off the bat and did nothing else, you'd still only lose power to a small fraction of Kenya occasionally.
2. They're not building it at full capacity. They're building a small data center at first, then building it up over time as more generating capacity comes online.
3. They're a reliable customer of power. That means that they will alway pay the bill, even if it is high. The grid operators and generation plant operators can charge them a huge premium for bulk power, then use that extra revenue to build more power plants. By the time the data center is running at full capacity, they could have more than enough power to power it.
4. Even if that extra investment in production doesn't happen, they can just refuse to provide the additional power from the grid. I'm sure Microsoft knows how to do solar + storage by now, and if not, they can pay someone to do it for them who does. Or they can build their own geothermal plant right next to the existing one. Or they can do any number of other things to produce power, like installing an SMR.
5. Nothing inherently prevents them from reducing power usage during peak load periods. Service will get slower, but should gracefully degrade, assuming they're doing it right. Nobody will lose power, realistically speaking.
It is unfortunate that so many people look at these data centers and the current worst-case state of resource availability and conclude wrongly that they are infeasible, but this is a common mistake made by planners, legislators, and members of the general public. They fail to account for how the existence of the data center with its need for resources will trigger the production of facilities to exploit previously unusable resources and make them available, and they fail to recognize that in a true power emergency, they can just turn 90% of it off and shift the load to other data centers.
But the reality of the matter is that nobody is going to build a gigawatt of additional power capacity in Kenya unless the government or some private company that needs power pays them to do it. They already have a 23 to 30% surplus compared with their worst-case power consumption. That means that adding more production will just drive power prices down, so they'll get less money for the power they produce.
But as soon as someone like Microsoft starts needing enough power to pull those margins down, suddenly additional capacity becomes economically feasible, and you'll see either existing power companies expanding or new power companies entering the market. And the existence of an all-but-guaranteed higher future demand is the key to making that happen. Without the data center being approved, that motive to expand does not exist, and the grid will likely stay at or near its currently levels unless the government forces the hand of the market by paying someone to build more generating capacity.
