Microsoft’s African Data Center Falters on Payment Demands (1)

A large Microsoft Corp. data center site in East Africa has been delayed by disagreements with the Kenyan government over the company’s request for guaranteed payments, people familiar with the matter said.

Microsoft and its partner, Abu Dhabi-based tech conglomerate G42, had asked the government to commit to paying for a certain amount of capacity annually, the people said, asking not to be identified because the talks are private. When the government couldn’t provide the guarantees at the level Microsoft requested, the talks broke down, they said.

The group may ultimately decide to scale back the project, the people said. ...