Lesotho has secured the largest foreign direct investment (FDI) in its history after signing a landmark $6.2 billion (M100 billion) agreement for the Kobong Project, a transformative initiative that will combine large-scale renewable energy generation with an artificial intelligence (AI) data centre.
Backed by New York-based renewable energy developer Convalt Energy, the project will integrate 1.2GW of pumped-storage hydropower with a 4.6GW solar power installation to generate clean electricity for a dedicated AI data centre while supplying surplus power to the Southern African Power Pool (SAPP). The initiative is expected to transition Lesotho from a net importer of electricity into a regional exporter of renewable energy and digital infrastructure services.
The agreement was officially launched at the U.S. Embassy in Maseru following initial agreements signed in June. According to the U.S. Embassy, the Kobong Project is the flagship investment within $7.3 billion in commercial partnerships facilitated between the United States and Lesotho over the past 18 months. Convalt Energy will fund the project’s initial feasibility studies, with construction expected to begin in 2029.
Beyond expanding renewable energy generation, the project is expected to accelerate economic development through job creation, skills transfer, grid modernisation and the growth of Lesotho’s digital economy. By leveraging the country’s abundant water resources and favourable climate, the AI data centre aims to position Lesotho as a regional hub for green-powered AI computing and advanced digital infrastructure.
The landmark investment marks a significant milestone in Lesotho’s economic transformation, strengthening energy security while opening new opportunities in artificial intelligence, renewable energy and digital innovation across Southern Africa.
