---
title: Lesotho secures major data centre and hydropower deal - Developing Telecoms
description: Lesotho has secured what is being described as the largest foreign investment in its history with the signing of the US$6.2 billion Kobong Project, whose aims include the development of hydropower resources and an artificial intelligence (AI) data centre.
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Lesotho has secured what is being described as the largest foreign investment in its history with the signing of the US$6.2 billion Kobong Project, whose aims include the development of hydropower resources and an artificial intelligence (AI) data centre.

Backed by New York-headquartered renewable energy firm Convalt Energy, which says it is creating an integrated value chain comprising solar PV manufacturing, power generation and development of data centres, the dual-infrastructure development is expected to shift the country from a net electricity importer to a regional power exporter.

Once operational, the project will have a generation capacity of 1.2GW, with an additional 4.6GW of solar capacity.

This is expected to increase Lesotho's domestic power capacity, reducing reliance on imports, while supplying energy to an adjacent data centre designed for AI workloads.

Convalt Energy says it will fund the initial feasibility studies, with construction targeted to begin in 2029.

The development also aims to position Lesotho as a regional hub for AI-driven digital infrastructure, leveraging its climate, natural resources and governance framework. Indeed, Convalt says that Lesotho's climate, abundant land and water, energy potential, and stable democratic government make it a premier data centre location.

The importance of the deal was underlined by an event at the US embassy to celebrate the signing, attended by a number of government officials, heads of diplomatic missions and business leaders.

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