Microsoft to Invest in South Africa’s AI Infrastructure

Microsoft has announced a major investment of 5.4 billion rand (approximately $296.81 million) to enhance its artificial intelligence (AI) and cloud infrastructure in South Africa.

The investment, set to be completed by 2027, aims to expand Azure capabilities in the country and strengthen its position as a key player in Africa’s growing AI ecosystem.

This initiative builds on Microsoft’s previous investment of 20.4 billion rand over the past three years, which saw the launch of South Africa’s first enterprise-grade data centres in Johannesburg and Cape Town.

The new funding will support businesses, government agencies, and start-ups by providing greater access to cloud computing and AI-driven solutions, enhancing digital transformation across multiple sectors.

Also Read: Microsoft To Invest $2.1 billion in Spain AI infrastructure

Alongside infrastructure development, Microsoft is also prioritising skills development to bridge the digital divide. Over the next year, the company will fully fund technical certification exams for 50,000 South Africans in high-demand fields such as AI, data science, cybersecurity, and cloud solutions.

This initiative aligns with the World Economic Forum’s findings that a significant skills gap in digital expertise could hinder technological progress in emerging economies.

South African President Cyril Ramaphosa welcomed the investment, calling it a positive signal to the global business community that South Africa remains an attractive destination for investment and innovation.

Microsoft’s Vice Chair and President, Brad Smith, reaffirmed the company’s long-standing commitment to South Africa, stating that the investment would help equip young professionals with the skills needed to thrive in a technology-driven economy.

By strengthening AI infrastructure and investing in digital talent, Microsoft is positioning South Africa as a leading hub for AI and cloud innovation in Africa, fostering economic growth and technological advancement in the region.