JOHANNESBURG: The U.S. is beating China in a high-tech trade war over data centers in a fierce battle being waged across Africa.
Major new deals have been engineered in a public-private partnership between the Trump administration and U.S. companies in Africa, while States across the U.S. clamp down on the centers over their massive reliance on electricity.
The administration’s Bureau of African Affairs has reported it has worked on 37 commercial transactions that have closed since the beginning of President Donald Trump’s second term — representing $25.67 billion in total value, with more still being reported.
Data centers are at the heart of today's global economy — fueling the massive demand for AI and hosting everything from video streaming to housing cloud networks.
In Lesotho, with U.S. help, an American company has won a $6.2 billion deal for a data center and hydropower plant. It is the largest transaction in this Southern African country’s history.
In Gabon, the U.S. Embassy helped win $600 million in business for American companies in 2025. And this year, the embassy in this central African country has assisted in securing a $100 million contract to supply two data centers and a gas-to-power plant, in the face of strong competition from China.
Assistant Secretary of State for African Affairs Frank Garcia told Fox News Digital, "Under President Trump’s leadership, the United States is assisting U.S. companies to find new markets and flourish in Africa."
The main strategic competitor in Africa is China. While American goods traded with Africa last year were valued at $83.4 billion by the Office of the United States Trade Representative, Beijing’s General Administration of Customs claimed bilateral trade between China and Africa reached $348 billion for the same period.
But Garcia called out China for giving African countries a raw deal, saying "there are others (notably China) that trap, coerce and undermine. The choice to me is clear — partner with the United States for prosperity."
To drive this initiative, the State Department, through the Bureau of African Affairs, launched the Commercial Diplomacy Strategy in early 2025, with Garcia telling Fox News Digital the U.S. "is working worldwide to advance a level playing field for U.S. companies and address disparities in trade practices."
The playing fields in Lesotho are not level: Geographically because this is a mountain kingdom. Financially because China is historically deeply entrenched in life there. Beijing has dropped all tariffs on Lesotho’s exports. Payments between the two countries have been simplified, with Lesothans able to bank directly with the State-owned Industrial and Commercial Bank of China.
Beijing has canceled debt on major projects in Lesotho, and among other major projects is building a new fire station, a solar power plant and even completed a police fingerprint examination laboratory.
This makes it all the more remarkable that, with the administration’s help, primarily through the local embassy, U.S. company Convalt Energy has secured a $6.2 billion agreement with the government of Lesotho.
Garcia told Fox News Digital that the "project includes a 1,200MW pumped-storage hydropower facility and a 900MW AI data center, increasing Lesotho's electricity generation capacity by approximately 1,600% and transforming the country into a net exporter of electricity. The project is expected to generate approximately $2 billion in U.S. energy equipment exports."
Convalt Energy’s president and CEO, Hari Achuthan, told Fox News Digital how U.S. companies such as his are beating China on their traditional turf: "American companies can compete successfully by innovating faster, integrating hardware and software, and remaining intensely focused on the needs of the end customer."
A new data center, Achuthan believes, is not only at the heart of the project, but is essential for any country’s growth. "The next major cycle of economic growth will increasingly be driven by artificial intelligence, digital infrastructure and the energy systems required to support them. AI cannot scale without physical infrastructure. Every data center requires reliable power, water, fiber connectivity, land, cooling systems and resilient transmission infrastructure."
"The Trump administration’s emphasis on trade and private-sector investment, rather than relying primarily on grant funding, is closely aligned with our approach in Africa," Achuthan continued. "In Lesotho, we are pursuing a commercially sustainable infrastructure platform built around long-term investment, bilateral trade with a durable, sustainable operating business."
"At the same time," Achuthan added, "the project can create meaningful economic benefits in the United States. Convalt’s U.S. manufacturing facilities are being developed to serve domestic customers as well as international markets, particularly Africa, where demand for power, manufacturing capacity and digital infrastructure is growing rapidly."
The construction of two data centers is part of the $100 million deal Assistant Secretary Garcia says administration officials have helped American company Cybastion secure. Garcia added, "Notably, the U.S. company prevailed over Huawei (a Chinese company) in a direct competition for the project."
Cybastion CEO Dr. Thierry Wandji believes U.S. companies can and are now coming to the fore. Earlier this month, the U.S. Embassy in the Ivory Coast confirmed an even larger deal for Cybastion. The $170 million contract will bring a data center, government digitalization platform and a cutting-edge border surveillance system to this West African country.
Wandji told Fox News Digital, "We believe we are the better option compared to other global competitors. Cybastion brings a unique understanding of the African context and local business environments."
"Africa has some of the world's fastest-growing economies," Wandji continued. "Across the continent, countries are prioritizing sovereign data centers, modernizing their government services through digitalization, and digital workforce development as part of their national development plans.
"The U.S. tech sector offers global competitiveness unparalleled to any country in the world," Wandji added. "We deliver innovation, transparency and accountability in our business offerings, while creating new markets for U.S. companies."
Convalt’s Achuthan told Fox News Digital what’s working for U.S. business in Africa, "American companies must clearly communicate the value of quality, transparency, safety, responsible business practices and long-term community partnership. Competing solely on price is not enough going forward. Companies from the United States should compete on performance, reliability, innovation, institutional trust and the ability to create sustainable local economic benefits."