Maseru – Lesotho has signed a binding agreement with United States-based Convalt Energy for a $6.2 billion hydropower and artificial intelligence data centre project, in what will become the largest foreign direct investment in the country’s history.
The Memorandum of Agreement, valued at 98 billion maloti, was signed on 4 June 2026 between Convalt Energy and the Lesotho Ministry of Energy, covering the construction of 1,200 megawatts of hydropower capacity alongside an integrated AI data centre under a development known as Project Kobong.
The deal follows a meeting between His Majesty King Letsie III and former United States House of Representatives Majority Leader Richard Gephardt, who serves as a board member and shareholder of Convalt Energy. The two held discussions about the project and Lesotho’s ambitions to become a regional leader in energy and digital infrastructure. 
The U.S. Embassy in Maseru said it was honoured by the engagement, noting that the project would propel Lesotho as a power exporter, eliminate costly electricity imports from South Africa and give the mountain kingdom a central role in powering the global AI future.
American exports tied to the project are expected to exceed $2 billion, generating substantial United States content and manufacturing activity.
The embassy thanked King Letsie III and Gephardt for their forward-thinking perspectives, saying the partnership would secure a brighter future for both Basotho and the people of the United States.
