The mountain kingdom of Lesotho has announced plans to build its first AI data center in the Mokhotlong district which will be powered by green energy.
The Lesotho government earlier this month signed a US$6.2 billion memorandum of understanding (MoU) with US-based renewable energy and advanced manufacturing company, Convalt Energy, to construct the AI data center along with 1.2 GW of hydropower, 4.6 GW of solar generation capacity and up to 4 GwH battery energy storage system (BESS).
Currently, the Southern African nation has only two data centers, which are primarily focused on telecom and government services.
The construction of the AI data center, which is expected to begin in 2029, aims to augment digital transformation in the kingdom.
Once completed, the AI data center will be amongst the largest in the region, linking some of the region’s fiber infrastructure to the data center.
However, the MoU agreement represents an expression of intent rather than a construction commitment, with feasibility studies and regulatory approvals to be completed before construction is confirmed.
Lesotho’s online penetration rate stood at just 48% at the end of 2025, showing a huge digital divide with those residing in the rural areas bearing the brunt.
This has also contributed to the youth unemployment rate, which is hovering at around 30% and which even saw the government declaring a national state of disaster last July.
However, the construction of the AI data center is expected to boost the kingdom’s digital economy through faster and cheaper Internet and lower latency, and by enabling local cloud infrastructure.
Lesotho’s digital divide is evident with an online penetration rate of just 48% at the end of 2025. (Source: slon.pics on Magnific)
According to Convalt Energy CEO Hari Achuthan, over the years the company has repositioned its operations toward providing integrated infrastructure solutions for AI-driven and energy-intensive industries.
“Convalt is evolving to meet market needs by advancing new activities across the value chain, from infrastructure development, advanced manufacturing, particularly in the solar sector, to building data center infrastructure. We are thrilled to be partnering with our Lesotho partners to bring clean energy, jobs and economic development to their nation,” said Achuthan.
In addition, the US Embassy in Lesotho said the historic $6.2 billion MoU will aid the kingdom in shaping its economic trajectory.
“This project will give Lesotho a central role in powering the AI future while also generating substantial US content and manufacturing where American exports are expected to exceed $2 billion,” the US Embassy said in a statement.
Thabang Pinyane, a specialist in AI, told Connecting Africa that data centers are becoming critical assets in the global digital economy by supporting cloud computing, artificial intelligence applications, data analytics, and digital services.
“The advent of the AI data center in the country can contribute to reduced latency for services hosted within the country or region because data will not always need to travel to servers located overseas, thereby improving the performance of government systems, financial services, educational platforms and business applications,” Pinyane said.
Lesotho is highly mountainous, which has over the years adversely affected Internet connectivity, particularly fiber rollouts.
Last year, US-based satellite Internet provider Starlink launched in Lesotho, setting precedence for satellite connectivity that is not affected by the local terrain.
With the inception of Starlink and the future augmentation of optical fiber routes in the landlocked country, the AI data center is set to improve connectivity and provide a reinforced digital system.
“Regarding Starlink, the two developments are complementary rather than competing. Together, they can contribute to a stronger digital ecosystem,” said Pinyane.
In addition, Pinyane said Lesotho is making gradual progress in its digital transformation journey, as evidenced by the expansion of mobile broadband, digital government initiatives, fintech services and digital skills programs.
“The AI data center can also strengthen national cybersecurity by enabling more local data hosting and creating opportunities for investment in cyber resilience and digital governance frameworks,” she said.
However, Pinyane said high-speed Internet improvements will also depend on investments in fiber networks, local Internet exchange points, and broader telecommunications infrastructure.
“To fully realize these benefits, Lesotho must simultaneously invest in digital literacy, STEM [science, technology, engineering, and mathematics] education, affordable Internet access, innovation support programs, and policies that ensure rural communities are not left behind,” said Pinyane.
She also noted that if implemented effectively, the agreement can strengthen energy security, accelerate digital transformation, and establish the country as an emerging player in Africa’s technology and AI ecosystem.
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