Microsoft has announced a significant commitment to invest ZAR 5.4 billion in cloud and artificial intelligence infrastructure in South Africa, with the goal set for completion by 2027.
This investment builds upon the ZAR 20.4 billion that Microsoft has already allocated to establishing data centres in Johannesburg and Cape Town over the past three years.
“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 our economy. The strategic investment announcements made by Microsoft today stand as further testimony to this enduring confidence, signalling to the business and investor community that South Africa’s economy continues to hold immense potential,” said South African President Cyril Ramaphosa.
Brad Smith, Microsoft’s vice chair and president, emphasized the company’s enduring partnership with South Africa, highlighting that the new investment reflects Microsoft’s broader commitment to leveraging technology for economic prosperity and equipping young workers with essential skills.
In conjunction with its infrastructure investment, Microsoft is also expanding its digital skills initiative over the next 12 months. The company plans to fund the training of 50,000 individuals to become ‘Microsoft Certified’ in critical areas such as AI, Data Science, Cybersecurity Analysis, and Cloud Solution Architecture.
Microsoft originally launched its cloud services in the region with two cloud regions — South Africa North and South Africa West — in 2019, adding a new availability zone in 2021 and subsequently removing the South Africa West region. In February 2024, Microsoft announced plans for a new data centre campus in Centurion, though the region faced a temporary outage in March 2024 due to subsea fibre cable cuts impacting connectivity.
With these investments, Microsoft aims to bolster South Africa’s position as a technology hub in the region, supporting economic growth and digital transformation initiatives.
