Microsoft has announced plans to spend ZAR 5.4 billion (~ US$ 298 million) by the end of 2027 to expand its cloud and Artificial Intelligence (AI) infrastructure in South Africa to meet the growing demand for Azure services in the region. This investment builds on the company’s ZAR 20.4 billion (~ US$ 1 billion) investment over the past three years to establish the nation’s first enterprise-grade datacentres in Johannesburg and Cape Town.
In a press release Microsoft said that this round of investment aims to enable a wide range of organisations, from start-ups to large multinationals and government entities to access the cloud and AI solutions to improve operational efficiency and productivity, optimise the delivery of services, and drive innovation across the South African economy.
Microsoft also has ambitious plans to provide skills improvement training in cloud architecture, AI and cybersecurity.
The announcement was made at a conference in Johannesburg by Brad Smith, Vice Chair and President of Microsoft. He said, “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.”
Speaking at the same conference, South African President Cyril Ramaphosa said, “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. The strategic investment announcements made by Microsoft today stand as further testimony to this enduring confidence.”
Microsoft has had a presence in South Africa for over 30 years. Customers across various industries in South Africa and Africa, including financial services, healthcare, retail, agriculture, mining, and public sector, are already using Microsoft cloud and AI technologies.