Tech giant Microsoft announced plans to spend R5.4 billion by 2027 in an effort to expand its Cloud and artificial intelligence (AI) infrastructure in South Africa, as the company works to meet the growing demand of Azure services in the country.
This investment builds on the company’s R20.4 billion investment over the past three years to establish South Africa’s first enterprise-grade datacentres in Johannesburg and Cape Town.
According to astatement, the latest investment is set to enable startups, large multinationals and government entities to access Microsoft’s cloud and AI solutions. These solutions will improve operational efficiency and productivity and optimise delivery of services while driving innovation across various industries.
“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.”
Last year, the tech company announced its commitment to up-skilling one million South Africa by 2026 by equipping companies, government and youth with knowledge and tools to create AI solutions. In 2024, Microsoft says more than 150 000 were trained through Microsoft’s Skills for Jobs programme,
To further drive its digital skills initiative, Microsoft will pay for 50 000 people to be Microsoft-certified in high-demand skills like AI, data science, cybersecurity analysis and cloud solution architecture.
“The strategic investment announcements made by Microsoft stand as further testimony to the enduring confidence (in South Africa). 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,” concluded President Cyril Ramaphosa.
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