Microsoft has announced plans to spend ZAR 5.4 billion to expand its cloud and AI infrastructure in South Africa by 2027. This investment builds on the company's ZAR 20.4 billion investment over the past three years to establish enterprise-grade data centers in Johannesburg and Cape Town.
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AI and Cloud in South Africa
Microsoft says this round of investment will enable a wide range of organisations—from start-ups to large multinationals and government entities—to access cloud and AI solutions to improve operational efficiency and productivity, optimise service delivery, and drive innovation across the South African economy.
President Cyril Ramaphosa welcomed the announcement, calling it a "vote of confidence" in South Africa's economy and business environment.
Customers across various industries in South Africa and Africa, including financial services, healthcare, retail, agriculture, mining, and public sector, are already reaping the benefits of Microsoft cloud and AI technologies, the company said in a blog post on March 6.
"For more than 30 years, Microsoft has been a committed partner to South Africa," said Brad Smith, Vice Chair and President of Microsoft. "This latest investment is part of our broader focus in helping South Africans build a future where technology drives prosperity and young workers have the skills they need to thrive."
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Bridging the Digital Skills Gap
Microsoft cited the World Economic Forum, which reports that 60 percent of companies in the Global South identify a critical skills gap as a key barrier to business digitally transforming by 2030.
To address the shortage of AI and digital skills, Microsoft said it is expanding its skills development programs. Earlier this year, the company committed to skilling one million South Africans by 2026 and will fund 50,000 certifications in high-demand fields like AI, Data Science, Cybersecurity Analysis and Cloud Solution Architecture over the next year.
Commitment to AI and Digital Transformation
In 2024 alone, Microsoft reported that over 150,000 individuals received digital and AI training, with 95,000 obtaining certifications and 1,800 securing jobs through Microsoft's Skills for Jobs program. Over the past year, Microsoft's commitment exceeded USD 100 million in software donations to South African educational institutions and nonprofits.
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Microsoft believes that South Africa has an opportunity to lead the way in enabling Africa to become a producer of AI technology, not just a consumer, the official release said, adding that the AI infrastructure operating in South Africa will be governed by Microsoft's AI Access Principles.
