Kenya pursues AI data centre investment amid water scarcity concerns

Kenya’s burgeoning data‑centre sector is attracting significant foreign investment as the country positions itself as a digital hub for East Africa. Major projects slated for Nairobi, Mombasa and the Rift Valley promise high‑capacity facilities that rely on water‑intensive cooling systems, prompting regulators to approve large‑scale water allocations for the industry. The Ministry of Information, Communications and the Digital Economy has highlighted the sector’s contribution to job creation and GDP growth, while utilities such as the Nairobi Water and Sewerage Company have begun issuing permits that could divert millions of litres of water from municipal supplies to these new facilities.

Local residents and community groups, however, warn that the added demand will exacerbate an already strained water infrastructure that struggles to meet domestic and agricultural needs. Advocacy organizations have called for stricter environmental impact assessments and the adoption of alternative cooling technologies, such as air‑side economizers and recycled‑water loops, to mitigate the pressure on scarce water resources. Government officials acknowledge the concerns and have indicated that future licensing will incorporate water‑use efficiency criteria, aiming to balance the economic benefits of data‑centre expansion with sustainable water management for Kenya’s growing population.