Microsoft announces ZAR 5.4 billion investment to expand Cloud and AI infrastructure in South Africa

Microsoft has unveiled plans to invest ZAR 5.4 billion by the end of 2027 to expand its cloud and AI infrastructure in the country. This significant investment builds on the company’s previous ZAR 20.4 billion commitment over the past three years, which established South Africa’s first enterprise-grade datacentres in Johannesburg and Cape Town. The expansion aims to meet the growing demand for Microsoft Azure services and empower organizations across industries to drive innovation, improve operational efficiency, and optimize service delivery.

The announcement underscores Microsoft’s long-standing commitment to South Africa and its vision of fostering a future where artificial intelligence (AI) is seamlessly integrated into every aspect of society, driving growth and innovation. The investment is expected to benefit a wide range of stakeholders, from startups and multinational corporations to government entities, enabling them to leverage cutting-edge cloud and AI technologies to address local challenges and unlock new opportunities.

The investment was welcomed by President Cyril Ramaphosa, who highlighted its significance as a testament to South Africa’s economic potential and attractiveness as a destination for global investment. “Beyond blazing a trail in the local technology space, the longstanding presence of Microsoft in South Africa is a vote of confidence in our country and in our economy,” said President Ramaphosa. “The strategic investment announcements made by Microsoft today stand as further testimony to this enduring confidence. They signal to the business and investor community that South Africa’s economy continues to hold immense potential and that it is a favourable place to do business where their investments are secure.”

Microsoft’s expanded infrastructure will support organizations across key sectors, including financial services, healthcare, retail, agriculture, mining, and the public sector. By providing access to world-class digital infrastructure, Microsoft aims to help these industries improve productivity, enhance service delivery, and drive innovation.

“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.”

A critical component of Microsoft’s investment is its commitment to addressing the digital skills gap in South Africa. According to the World Economic Forum, 60% of companies in the Global South identify a lack of skills as a key barrier to digital transformation by 2030. To bridge this gap, Microsoft has pledged to skill one million South Africans by 2026, equipping individuals and organizations with the knowledge and tools to create AI solutions that address local challenges.

As part of this initiative, Microsoft will expand its digital skills program over the next 12 months by funding 50,000 certifications in high-demand areas such as AI, Data Science, Cybersecurity Analysis, and Cloud Solution Architecture. These certifications will help job seekers validate their skills and enhance their employability in the rapidly evolving tech landscape.

In 2024 alone, Microsoft’s Skills for Jobs program trained over 150,000 people in digital and AI skills, certified 95,000 individuals, and helped 1,800 people secure employment opportunities. Additionally, Microsoft has provided over $100 million in donated and discounted software to South African educational institutions, nonprofits, and public libraries, ensuring equitable access to technology and digital skills.

By investing in cutting-edge infrastructure and fostering a skilled workforce, Microsoft aims to enable South Africa and Africa to lead in AI innovation, enterprise development, and economic growth. “South Africa has an opportunity to lead the way in enabling Africa to become a producer of AI technology, not just a consumer,” said Brad Smith.

“These are not just investments and programs; they are an integral part of Microsoft’s long-term commitment to South Africa and pathways to a more inclusive, sustainable economy,” he added.

By:  Nana Appiah Acquaye