A US-based renewable energy company just signed a $6.2 billion agreement to build a massive hydropower plant and AI data center in one of Africa’s smallest countries.
Convalt Energy inked a Memorandum of Agreement with Lesotho’s Ministry of Energy on June 4, valued at 98 billion maloti (roughly $6.2 billion). The project, called the Kobong Hydropower and AI Data Centre Project, would be located in the Mokhotlong District and represents the largest foreign direct investment ever committed in Lesotho.
What the Kobong project actually involves
The centerpiece is a 1,200 MW hydropower facility. For Lesotho, which currently imports most of its electricity from South Africa, that kind of capacity is transformative.
The second component is an AI data center, which would be powered by the hydropower plant’s clean energy output.
The negotiations featured some notable names. King Letsie III of Lesotho led discussions on the country’s side, while Richard Gephardt, former US House Majority Leader and current board member of Convalt Energy, represented the company.
Convalt Energy, established in 2011, is positioning itself as a developer at the intersection of renewable energy and digital infrastructure.
Why Lesotho, and why now
Lesotho’s geography makes this less surprising than it sounds. The country sits at high altitude in the Drakensberg mountain range, with significant water resources that have historically been exported to South Africa through the Lesotho Highlands Water Project.
The deal is expected to generate more than $2 billion in American export opportunities, which means US manufacturers of turbines, construction equipment, and related infrastructure stand to benefit directly.
What this means for investors
Here’s the thing about Memorandums of Agreement: they are statements of intent, not binding construction contracts. The gap between a signed MOA and a completed $6.2 billion infrastructure project is enormous. Financing needs to be secured. Environmental assessments need to be conducted.
The competitive landscape for African energy infrastructure is heating up. Chinese companies have dominated infrastructure investment across the continent for years. A US-backed project of this magnitude, with a former House Majority Leader on the company’s board, signals an intentional push to compete for that market share. The more than $2 billion in projected American exports underscores the point.