Microsoft announced a plan to invest approximately $296 million (ZAR 5.4 billion) by the end of 2027 to bolster its cloud and AI infrastructure in South Africa. This expansion aims to meet the region’s increasing demand for Azure services.
This new commitment follows the company’s $1.12 billion (ZAR 20.4 billion) investment over the last three years, which established the nation’s first enterprise-grade data centers in Johannesburg and Cape Town. The investment is expected to provide a wide range of organizations – from nascent startups to established multinational corporations and government bodies – with access to cloud and AI solutions.
These resources will facilitate improvements in operational efficiency and productivity, optimize service delivery, and drive innovation throughout the South African economy. Providing access to world-class digital infrastructure and enhancing the skills of the South African workforce will help integrate AI seamlessly into every aspect of society, fostering growth and innovation.
President Cyril Ramaphosa welcomed the investment and 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 favourable place to do business where their investments are secure.”
Customers across diverse South African and African industries, including financial services, healthcare, retail, agriculture, mining, and the public sector, are already realizing the benefits of Microsoft’s cloud and AI technologies.
“For more than 30 years, Microsoft has been a committed partner to South Africa,” said Brad Smith, Vice Chair and President of Microsoft. He added, “This latest investment is part of our broader focus on helping South Africans build a future where technology drives prosperity and young workers have the skills they need to thrive.”
According to the World Economic Forum, 60 percent of companies in the Global South identify a critical skills gap as a key barrier to digital transformation by 2030. Addressing this gap is essential for fostering economic growth and innovation.
Earlier this year, Microsoft pledged to skill one million South Africans by 2026. This initiative will equip companies, government entities, and young people with the necessary knowledge and tools to create AI solutions that address local challenges, contribute to the nation’s AI workforce, and develop a robust ecosystem.
To further assist job seekers, Microsoft intends to expand its digital skills initiative over the next 12 months, offering to pay for 50,000 individuals to become “Microsoft Certified” in high-demand skills such as AI, Data Science, Cybersecurity Analysis, and Cloud Solution Architecture.
Microsoft provides various certifications under the “Microsoft Certified” umbrella, validating skills and expertise in areas like cloud computing, artificial intelligence, data science, cybersecurity, and software development. These certifications help individuals showcase their proficiency and readiness for in-demand tech roles. By combining skills training with recognized certifications, Microsoft anticipates cultivating a future-ready workforce for South Africa and beyond.
