The Government of Lesotho and Convalt Energy have signed a binding Memorandum of Agreement to advance a proposed US$6.2 billion renewable energy and digital infrastructure development centred on the Kobong Hydropower and AI Data Centre Project.
The project would combine at least 1200MW of renewable hydropower capacity with a green-powered AI data centre and forms part of a wider partnership that could also see the development of approximately 4.6GW of solar generation capacity, including ground-mounted and floating solar installations, and up to 4GWh of battery energy storage systems (BESS).
Lesotho’s government has described the agreement as the largest investment commitment in the country’s history, although the project remains subject to feasibility studies, financing, permitting, regulatory approvals and definitive agreements.
According to the government, the development is intended to strengthen energy independence, reduce reliance on imported electricity, create jobs and support local enterprise development while positioning the country to benefit from growing demand for AI and digital infrastructure.
Government spokesperson Boitelo Rabele said: “For many years, Basotho have spoken about the immense potential of our natural resources. Today, we are beginning to see practical steps towards converting that potential into opportunities that can benefit current and future generations.”
He added: “This project presents an opportunity for Lesotho to strengthen its energy independence, reduce reliance on imported electricity, create jobs, stimulate local enterprise development and attract further investment into the country.”
The government said the project, if realised, could establish Lesotho as a regional centre for green energy and digital infrastructure.
Hari “Harry” Achuthan, CEO of Convalt Energy, said: “Over the past year, Convalt has repositioned our operations toward providing integrated infrastructure solutions for AI-driven and energy-intensive industries. As our company expands its capabilities by leveraging the development and manufacturing expertise of its management team, Convalt is evolving to meet market needs by advancing new activities across the value chain, from infrastructure development, advanced manufacturing—particularly in the solar sector—to building data center infrastructure. We are thrilled be partnering with our Lesotho partners to bring clean energy, jobs and economic development to their nation.”
The Lesotho project company is expected to sit within Convalt International, a proposed entity intended to hold the company’s international assets, subject to the completion of the required corporate and regulatory processes.
Convalt said projects developed through Convalt International may utilise products manufactured by the company’s US operations where commercially appropriate and are expected to seek funding from a combination of equity investment, multilateral development finance institutions, strategic partners and project finance facilities.
Subject to successful project development and the execution of definitive supply agreements, Convalt said it may also have the opportunity to supply solar modules for the project, with deliveries potentially commencing in the fourth quarter of 2028.
