Convalt Energy, a U.S.-based renewable energy company, has signed a $6.2 billion agreement to develop a combined hydropower and artificial intelligence data center project in Lesotho, marking one of the largest proposed infrastructure investments in the country.

The company reached a Memorandum of Agreement with Lesotho’s Ministry of Energy on June 4. The deal is valued at 98 billion maloti (about $6.2 billion) and covers the Kobong Hydropower and AI Data Centre Project in the Mokhotlong District. If completed, it would represent the largest foreign direct investment commitment in Lesotho’s history.

The discussions involved Lesotho’s King Letsie III, who participated in high-level engagement on the government side, while Richard Gephardt, former U.S. House Majority Leader and a board member of Convalt Energy, represented the company.

Hydropower core with a digital buildout

At the center of the project is a 1,200-megawatt hydropower facility. For Lesotho, a landlocked country that currently relies heavily on electricity imports from South Africa, the scale of planned generation would significantly expand domestic supply.

The hydropower plant is also intended to power an on-site artificial intelligence data center, linking energy production directly with digital infrastructure. The company has framed the concept as a way to pair renewable power with growing global demand for computing capacity.

Lesotho’s mountainous terrain and water resources, already partially used in regional water transfer schemes, have long been viewed as a potential base for expanded hydropower development.

Strategic timing and investment implications

The agreement also carries an export dimension. Convalt Energy estimates the project could generate more than $2 billion in U.S. export opportunities, particularly for equipment such as turbines, heavy construction materials, and electrical systems.

The timing reflects rising competition for large-scale infrastructure projects across Africa, where Chinese firms have historically played a dominant role. A U.S.-linked investment of this size, particularly with senior political figures involved in advisory roles, signals growing interest in securing a larger share of the continent’s energy and digital infrastructure buildout.

Still, the agreement remains a non-binding framework. A Memorandum of Agreement outlines intent but does not guarantee construction. Financing structures, regulatory approvals, environmental studies, and grid integration plans would still need to be completed before development can move forward.

Company background and broader ambitions

Convalt Energy, founded in 2011, develops renewable energy and infrastructure projects with a focus on solar, wind, waste-to-energy systems, and hydropower upgrades. It operates under ACO Investment Group.

In 2021, the company expanded its manufacturing footprint by acquiring solar panel tools and equipment from SunPower’s facility in Hillsboro, Oregon, originally developed by SolarWorld in 2009. That move formed part of its broader push into solar manufacturing and supply chain development in the United States.

The Lesotho project, if realized, would extend that strategy into large-scale generation and digital infrastructure, combining power production with data-driven services in a single integrated development.