Nairobi, May 12 -- Kenya has disagreed with global tech giant Microsoft over terms for building a Sh129 billion ($1 billion) data centre, triggering a delay in construction of the hub that was set to boost the country's prospects in the global AI race.

Kenya is hesitant to back Microsoft's demands for the country to mobilise the neighbouring countries and offer a guarantee for the uptake of cloud capacity from the mega data centre.

The US tech giant also wants Nairobi to guarantee regional network connectivity, which would enhance uptake of capacity in the centre from governments and private firms.

The upgrade of the facility to require 1000 megawatts of power from the initial 60MW for regional use has spooked Kenya, which reckons it l...