AMACO and ARISE IIP Advance US$700 Million Power and AI Infrastructure Project in Mombasa

Last Updated 9 hours ago by Kenya Engineer

AMACO Energy S.A. and ARISE Integrated Industrial Platforms (ARISE IIP) Kenya have signed a memorandum of understanding to advance a proposed US$700 million integrated power and digital infrastructure development at Dongo Kundu, Mombasa.

The project, known as HERCULES™, is designed to combine power generation, advanced cooling systems and infrastructure for artificial intelligence (AI) and hyperscale data centres within a single development. It will be integrated with ARISE IIP Kenya’s 500-acre Coast Integrated Industrial Park (CIIP), located near the Port of Mombasa.

The initial development is expected to deliver approximately 250 MW of net electricity generation capacity, with the system designed to expand progressively to as much as 1 GW as demand from industrial and digital infrastructure users increases.

According to AMACO’s project overview, the proposed investment is estimated at a minimum of US$700 million. The development will occupy approximately 210,000 square metres (50 acres) of onshore land within the industrial zone, together with a similar offshore footprint.

Integrated power generation and AI infrastructure

HERCULES™ is based on an integrated infrastructure model that places electricity generation alongside the data centres and industrial facilities that will consume the power.

Rather than relying entirely on electricity supplied through the national grid, the concept envisages dedicated generation capacity located close to major electricity users. This arrangement is intended to address the substantial and continuous power requirements associated with AI computing, hyperscale data centres and energy-intensive industrial operations.

The proposed system has three principal components: power generation, cooling infrastructure and AI computing facilities.

For the initial phase, AMACO proposes LNG-based dispatchable electricity generation delivered through a floating power barge. The project overview identifies gas turbines supplied through a strategic partnership with GE Vernova, signed in August 2026.

The generation system is designed to accommodate future changes in the energy mix, including a potential transition towards hydrogen and renewable energy as the relevant technologies and economics mature.

Cooling is another central component of the development. The project concept includes advanced cooling infrastructure, with the potential to utilise cold energy associated with LNG infrastructure. The project overview also identifies the possibility of recovering waste heat for freshwater production, potentially creating an additional link between the energy development and water infrastructure.

The integration of these systems is intended to support high-density computing facilities, whose power and cooling requirements are significantly greater than those of conventional data centres.

Mombasa’s industrial and digital infrastructure advantage

The selection of Mombasa as the first proposed HERCULES™ deployment site reflects the convergence of port infrastructure, industrial development and international digital connectivity.

The Coast Integrated Industrial Park at Dongo Kundu is being developed as a major industrial platform near the Port of Mombasa. Its location provides access to maritime transport and logistics infrastructure while creating space for manufacturing, processing and other industrial activities.

Mombasa is also an important landing point for international submarine fibre-optic cables connecting East Africa to global telecommunications networks. AMACO’s project overview identifies seven submarine cable connections serving the coastal city.

Combining this connectivity with dedicated electricity generation could strengthen Mombasa’s potential as a location for regional data centres and other digital infrastructure requiring reliable, continuous power.

AMACO estimates that the port, industrial and digital ecosystem around Mombasa has an identified near-term electricity requirement of approximately 1,350 MW. A further 300 MW of potential demand is associated with a proposed Mombasa desalination plant.

These figures provide an indication of the potential market for additional electricity generation, although the actual demand available to the project will depend on the development and connection of prospective customers.

George Olaka, Country Head and Chief Executive Officer of ARISE IIP Kenya, said the partnership would allow power and cooling infrastructure to be developed alongside the industrial park and the businesses it is intended to serve.

He noted that Mombasa’s international connectivity provides an opportunity to develop industrial production and digital computing capacity within the same coastal ecosystem.

Project development and anticipated employment

Under the MoU, AMACO and ARISE IIP Kenya will advance the project’s technical, commercial, environmental, regulatory and financial development.

The parties will also work on integrating the proposed onshore facility with marine and utility connections and developing a framework for supplying electricity, cooling and related services to businesses operating within the industrial park.

The project overview estimates that construction could generate between 1,500 and 1,850 employment opportunities across the project and its supply chain.

Once operational, the development is projected to support between 350 and 400 direct specialised jobs, alongside approximately 200 to 250 indirect jobs. The operational workforce is expected to include highly skilled personnel required to manage power generation, cooling systems and digital infrastructure.

Dr Theodore E. Theodoropoulos, Group Chief Executive Officer of AMACO Energy S.A., said the project was based on developing power infrastructure together with the data centres and industries that would consume the electricity.

He described Mombasa’s port, international connectivity and expanding industrial base as important considerations in developing an integrated energy and digital infrastructure platform.

Wider industrial infrastructure ambitions

The HERCULES™ development forms part of a broader cooperation between AMACO and ARISE IIP to explore smart power infrastructure deployments across Africa and other markets.

During the Mombasa programme, representatives from AMACO also visited ARISE IIP Kenya’s Vipingo Special Economic Zone and held discussions with the Kenya Ports Authority, Invest Kenya and the Special Economic Zones Authority.

ARISE IIP Kenya’s portfolio includes Vipingo Special Economic Zone, Vipingo Export Processing Zone, Coast Integrated Industrial Park, Great Rift Industrial Park and Vistari (Rivatex).

For Kenya, the proposed HERCULES™ development represents an opportunity to bring together energy infrastructure, industrial development and the rapidly growing demand for computing capacity. Its eventual implementation, however, will depend on the completion of technical studies, regulatory approvals, commercial arrangements and financing.

If realised, the project could establish a new model for supplying large industrial and digital infrastructure developments with dedicated power generation and integrated cooling services, while strengthening Mombasa’s position in East Africa’s emerging data-centre market.