Lesotho has secured a landmark $6.2 billion investment agreement with U.S.-based Convalt Energy to develop a large-scale hydropower plant and an artificial intelligence data center. The project is the largest investment commitment in the country’s history and aims to position Lesotho as a hub for both clean energy and advanced digital infrastructure.
The proposed development includes the construction of at least 1,200 megawatts of hydroelectric power capacity, along with a green-powered AI data center located near the Kobong Dam in the mountainous Mokhotlong region. The project is designed to integrate renewable energy generation with high-performance computing infrastructure, reflecting growing global demand for energy-intensive digital systems.
According to government officials, the initiative is expected to strengthen Lesotho’s energy independence, reduce reliance on imported electricity, and create new employment opportunities. It is also projected to stimulate local businesses and attract additional foreign investment into the country’s infrastructure and technology sectors.
Although the memorandum of understanding has been signed, authorities have clarified that feasibility studies and further assessments are still required before full implementation can begin. The agreement is therefore considered a strong statement of intent rather than a finalized construction commitment.
The project’s combined energy and data infrastructure model is seen as strategically significant, as global demand for data centers continues to rise with the expansion of artificial intelligence and cloud computing. However, energy supply constraints remain a major challenge for hyperscale data center development in many regions.
If implemented, the project would significantly increase Lesotho’s economic profile, as the investment value represents nearly three times the country’s 2024 GDP. It also reflects broader trends of increasing private sector involvement in Africa’s renewable energy and digital infrastructure development.
