Lesotho has secured its largest foreign direct investment to date, signing a $6.2 billion (M100 billion) Kobong Project to develop a hydropower and artificial intelligence (AI) data centre.
Backed by New York-headquartered renewable energy firm Convalt Energy, the dual-infrastructure development is expected to shift the country from a net electricity importer to a regional power exporter.
The project combines energy generation with AI infrastructure, highlighting the link between power availability and digital development, according to the Lesotho government.
The deal was publicly launched late last week during a ceremony at the US Embassy in Maseru, following agreements signed in June, the government said.
This comes as Lesotho has called for stronger global action to ensure developing countries are not left behind in the AI era, citing the need for affordable connectivity, reliable energy and robust digital infrastructure.
Officials in attendance included Minister of Energy and Mining Lejone Mpotjoane, Minister of Information, Communications, Science, Technology and Innovation Nthati Moorosi, and Minister of Environment and Forestry Thabo Mofosi.
The US Embassy said the Kobong facility is the cornerstone of $7.3 billion in commercial partnerships facilitated over the past 18 months.
Convalt Energy will fund the initial feasibility studies, with construction targeted to begin in 2029.
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.
Speaking at the launch, Thomas Hines, chargé d’affaires ad interim at the US Embassy in Lesotho, said: “This is trade over aid,” emphasising that the investment reflects international confidence in the country’s economic potential.
Hari Achuthan, CEO of Convalt Energy, said the project is expected to drive economic growth through job creation, skills development and infrastructure expansion.
The development also aims to position Lesotho as a regional hub for AI-driven digital infrastructure, leveraging its climate, natural resources and governance framework.
Lesotho has historically relied on electricity imports from neighbouring South Africa, despite its participation in regional water and hydropower projects such as the Lesotho Highlands Water Project.
The Kobong development signals a shift towards energy self-sufficiency and value-added digital infrastructure.
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