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Nairobi Business Monthly
Home»Briefing»Telco targets region with Sh19.4bn Tatu City data centre
Briefing

Telco targets region with Sh19.4bn Tatu City data centre

Victor AdarBy Victor Adar11th September 2025No Comments4 Mins Read
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Airtel Africa, through its data centre arm Nxtra, has broken ground for the construction of a data centre valued at Sh19.37 billion (150 million USD) at Tatu City special economic zone. The project is aimed at meeting the latest infrastructure requirements for cloud and Artificial Intelligence (AI) services.

Scheduled for completion in the first quarter of 2027, the data centre will have a power capacity of 44 megawatts and will host a new generation of servers capable of maintaining 99.999 percent uptime, with multiple redundant fibre paths to ensure connectivity.

This development comes as rival telecom operator Safaricom pledges increased focus on delivering reliable, scalable, and secure digital infrastructure, particularly for enterprises, hyperscalers, and government institutions.

The Nairobi Law Monthly September Edition

“We need to show that higher standards and this kind of capacity exists in Africa,” said Peter Ikumilu, Deputy Director General of the Communications Authority of Kenya. “Data has become the new currency of business and, hopefully, this facility will spur the growth of data centres in the region. We are building the digital future now.”

The increasing adoption of digital solutions in Kenya has been largely driven by growing smartphone use and widespread mobile data access. A recent sector report by the Communications Authority, covering January to March, shows machine-to-machine subscriptions rose by 3.5 percent to about 2 million—vital for the Internet of Things and smart technologies.

Mobile money subscriptions grew by 7.2 percent to 45.36 million, while the number of mobile money agents increased by 5.5 percent to 416,994.

Mobile data subscriptions reached 57.18 million (a 1.9 percent increase), and mobile broadband subscriptions hit 44.44 million (up 2.4 percent). Smartphone ownership rose to 42.35 million, a 2.1 percent rise from the previous quarter, while feature phones stood at 32.5 million, representing a 6.5 percent increase.

This shift toward advanced devices and broader digital access highlights the need for robust data infrastructure, which Airtel aims to address with its high-capacity facility.

During the groundbreaking ceremony, ICT Cabinet Secretary William Kabogo said the project supports the Kenya Kwanza government’s digital agenda to expand broadband access, spur innovation, and drive a digital economy.

“You will agree with me that Kenya leads and others follow… The scale and quality of this facility will firmly place Kenya on the map as a trusted host for global and regional digital infrastructure,” he said. “Above all, it is a reflection of the confidence in Kenya’s economy, policies and our vision for a digitally enabled society.”

The data centre will be built in two phases of 22 megawatts each, totalling 44 megawatts. It is expected to create hundreds of direct and indirect jobs during construction, and additional permanent roles in technical and operational support once completed.

Nxtra also plans to collaborate with local suppliers and contractors, contributing significantly to the local economy and strengthening Kenya’s tech ecosystem.

“There is growth across the board for Kenya as more and more SMEs and startups that will come to this country will actually need specialised data capabilities. So, this is not only a game changer for us. It is also changing the digital footprint in Africa,” said Nxtra Africa CEO Yashnath Issur, a former top executive at Amazon.

Issur added that Nxtra by Airtel is being built to global standards and will focus on sustainability, resilience, and security to support next-generation technologies.

Airtel Kenya Managing Director Ashish Malhotra said the data centre represents a key milestone for Kenya’s digital future.

“Once operational, it will attract global tech players, create jobs, lower the cost of digital services, and make it easier for Kenyan companies to grow, while Kenya strengthens its place as a regional hub for technology and innovation,” he said. “We believe also it will create a new portfolio of services that will maximise the benefits of AI and cloud.”

The Nairobi Law Monthly September Edition
Data centre Tatu City
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Victor Adar
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Victor Adar is a seasoned journalist with a Diploma in Mass Communication (Print) from the Technical University of Mombasa. He has previously worked with Reuters, Go Places travel magazine, and Aden Associates International. Since joining NBM in 2012, he has become a key member of the editorial team, covering enterprise, corporate affairs, HR, and technology.

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