Lesotho Signs $6.2 Billion Convalt Deal for 1,200 MW Dam and AI Data Centre
Updated
Updated · Business Insider Africa · Jun 5
Lesotho Signs $6.2 Billion Convalt Deal for 1,200 MW Dam and AI Data Centre
3 articles · Updated · Business Insider Africa · Jun 5
Summary
$6.2 billion—98 billion maloti—will fund Project Kobong, a 1,200-megawatt hydropower plant and integrated AI data centre under an agreement signed June 4 with U.S.-based Convalt Energy.
The project aims to end Lesotho’s dependence on imported electricity and turn it into a regional exporter, with planned capacity more than 10 times its current domestic generation base.
438 gigawatt-hours of Lesotho’s 970 gigawatt-hours consumed in 2024 were imported, as domestic capacity of about 105 MW lagged demand of roughly 209 MW.
The AI data centre adds a digital-infrastructure push, though its computing capacity, customers and construction timeline have not been disclosed.
If completed, the deal—expected to be Lesotho’s largest foreign direct investment—could also reshape ties with South Africa, which buys Lesotho’s water even as Lesotho buys South African power.
Can a landmark hydropower and AI project truly transform Lesotho, or will it become another cautionary tale for Africa?
With a partner's history of default, is Lesotho’s $6.2B energy deal a breakthrough or a massive gamble?
Lesotho’s $6.2 Billion Kobong Hydropower and AI Data Center Project: Transforming Energy, Digital Infrastructure, and Regional Influence
Overview
In June 2026, the Government of Lesotho and Convalt Energy signed a binding agreement to launch the Kobong Hydropower and AI Data Center Project, marking the largest private-sector investment in the country’s history. This ambitious project combines a major pumped storage hydropower facility with a green-powered AI data center, aiming to leverage Lesotho’s abundant renewable energy resources. By integrating clean energy generation with advanced digital infrastructure, the initiative positions Lesotho to reduce its reliance on imported electricity, boost energy security, and become a key player in Africa’s renewable energy and digital economy.