en.Wedoany.com Reported - The government of Lesotho has signed a $6.2 billion memorandum of understanding with U.S.-based Convalt Energy to build the country's first AI data center in the Mohotlong district, which will be powered by green energy. According to the memorandum, supporting projects include 1.2 GW of hydropower, 4.6 GW of solar power capacity, and 4 GWh of battery energy storage systems.
As of the end of 2025, Lesotho's internet penetration rate was only 48%, with a severe urban-rural digital divide and youth unemployment hovering around 30%. The government declared a national state of disaster in July last year. Currently, this southern African country has only two data centers, primarily serving telecommunications and government operations.
The AI data center is expected to begin construction in 2029 and, once completed, will become one of the largest data centers in the region. It will connect some of the region's fiber optic infrastructure to the data center, driving the Kingdom's digital transformation. However, the memorandum of understanding represents only an expression of intent, and feasibility studies and regulatory approvals are required before construction is confirmed.
Convalt Energy CEO Hari Achuthan stated that the company has repositioned its business over the years to provide integrated infrastructure solutions for AI-driven and energy-intensive industries, ranging from infrastructure development and advanced manufacturing to data center infrastructure. The U.S. Embassy in Lesotho said the project will help shape Lesotho's economic trajectory, with U.S. exports expected to exceed $2 billion.
Artificial intelligence expert Thabang Pinyane told a magazine that an AI data center can reduce latency for domestic or regional hosting services, improving the performance of government systems, financial services, education platforms, and commercial applications. Lesotho is a highly mountainous country, which has long hindered fiber optic deployment. Last year, U.S. satellite internet provider Starlink launched services in the country. Pinyane believes that Starlink and the AI data center complement each other, jointly contributing to building a stronger digital ecosystem, while also creating opportunities for investment in network resilience and digital governance by supporting more local data hosting. She also noted that improvements in high-speed internet will also depend on investments in fiber optic networks, local internet exchange points, and telecommunications infrastructure.
Pinyane added that to fully leverage these advantages, Lesotho must simultaneously invest in digital literacy, STEM (Science, Technology, Engineering, and Mathematics) education, affordable internet access, innovation support programs, and policies ensuring rural communities are not left behind. She also stated that if effectively implemented, the agreement could strengthen energy security, accelerate digital transformation, and position the country as an emerging player in Africa's technology and AI ecosystem.
