Lesotho Unveils Mega Hydropower and AI Data Center Project Under $6.2 Billion Agreement
Under the proposal, Convalt Energy plans to develop 1,200 megawatts of hydropower capacity alongside an integrated artificial intelligence data center.
The Kingdom of Lesotho has taken a major step toward expanding its energy and digital infrastructure ambitions with the signing of a binding Memorandum of Agreement (MoA) between the Ministry of Energy and U.S.-based Convalt Energy for a project valued at approximately $6.2 billion (98 billion maloti). The agreement, signed on June 4, 2026, is expected to become the largest foreign direct investment in Lesotho’s history.
The announcement followed a meeting between King Letsie III and former U.S. House Majority Leader and Convalt Energy board member Richard Gephardt. Discussions focused on advancing plans for a large-scale infrastructure initiative known as “Project Kobong,” which combines renewable energy generation with next-generation digital infrastructure.
Under the proposal, Convalt Energy plans to develop 1,200 megawatts of hydropower capacity alongside an integrated artificial intelligence data center. The project is designed to strengthen Lesotho’s energy security, reduce reliance on imported electricity, and position the country as a regional exporter of power.
Officials say the development could significantly transform Lesotho’s economic landscape by enabling the country to meet domestic electricity demand while supplying surplus energy to neighboring markets. The project is also expected to reduce dependence on electricity imports from South Africa and create new opportunities in the rapidly growing digital economy.
Beyond energy generation, the AI data center component is intended to establish Lesotho as a strategic hub for digital infrastructure and emerging technologies. The initiative aims to support the growing demand for computing power required by artificial intelligence applications while creating new avenues for economic diversification and technology-driven growth.
The project is also expected to generate substantial economic activity in both Lesotho and the United States. According to the announcement, American exports associated with the development could exceed $2 billion, supporting manufacturing and technology supply chains linked to the project.
If implemented as planned, Project Kobong would mark a significant milestone in Lesotho’s development agenda, positioning the country as both an energy exporter and an emerging player in Africa’s digital infrastructure ecosystem.
