Microsoft has committed to investing ZAR 5.4 billion ($298.6m) in cloud and AI infrastructure in South Africa by 2027.
This builds on the ZAR 20.4 billion ($1.13bn) Microsoft has already invested in infrastructure in South Africa over the past three years to establish data centers in Johannesburg and Cape Town.
South Africa's 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. They signal to the business and investor community that South Africa’s economy continues to hold immense potential and that it is a favorable place to do business where their investments are secure.”
“For more than 30 years, Microsoft has been a committed partner to South Africa,” added 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.”
In addition to investing in its cloud and AI infrastructure in the country, Microsoft is expanding its digital skills initiative over the next 12 months and will pay for 50,000 people to become "Microsoft Certified" in skills like AI, Data Science, Cybersecurity Analysis, and Cloud Solution Architecture.
Microsoft launched two cloud regions in South Africa - South Africa North and West in 2019, adding a new availability zone in 2021 and removing the South Africa West region.
In February 2024, the company revealed plans for a new data center campus in Centurion, South Africa. The region suffered an outage in March 2024 after a series of subsea fiber cable cuts along the east and west coasts of Africa.
Amazon Web Services launched a cloud region in South Africa in 2020. Google announced plans for its first region in the country in 2022, before launching in January 2024 with the Johannesburg region. Oracle opened its Johannesburg OCI region in January 2022.
