Lesotho Secures Historic $6.2 Billion Investment for AI Data Center and Green Energy Hub

Lesotho has signed a groundbreaking $6.2 billion foreign direct investment agreement with New York-based Convalt Energy for the Kobong Project. This initiative marks the largest single FDI in the nation's history and aims to transform the landlocked country into a regional hub for green energy and digital infrastructure. The project will combine large-scale renewable power generation, specifically pumped-storage hydropower and solar, with a high-performance AI data center.

The Kobong Project is designed to generate 1.2 GW of hydropower and 4.6 GW of solar energy, ensuring stable baseload power for both the AI data center and the broader regional grid. This integrated approach will enable Lesotho to transition from being a net electricity importer, historically reliant on South Africa's Eskom, to a net exporter within the Southern African Power Pool (SAPP). The on-site energy production will directly power an adjacent enterprise data center optimized for AI model training and computational workloads.

The strategic importance of this investment extends beyond energy independence. It positions Lesotho as a key player in Africa's emerging AI landscape, leveraging its natural resources and climate to establish a green-powered AI infrastructure hub. The project is expected to drive significant economic growth through job creation, skills development, and localized grid modernization. Convalt Energy is funding the initial feasibility studies, with construction slated to begin in 2029.

This development underscores a growing international confidence in Lesotho's economic potential and regulatory stability, as highlighted by U.S. Embassy officials. The project aligns with a broader trend of