Microsoft to Spend ZAR 5.4 Billion on Expansion of Cloud and AI Infrastructure in South Africa

Johannesburg, 06 March 2025 – Microsoft has announced plans to spend ZAR 5.4 billion in 2027 to expand its cloud and artificial intelligence (AI) infrastructure in South Africa. This huge investment comes after the company's previous ZAR 20.4 billion investment of the past three years, during which the nation's first enterprise-class datacentres were established in Johannesburg and Cape Town. The expansion is to meet rising demand for Azure services and encourage innovation across the region.

The investment will enable a wide range of organisations, from start-ups to multinational corporations and governments, to leverage Microsoft's cloud and AI capabilities. These technologies are expected to improve operational efficiency, improve service delivery, and spur innovation in key sectors like financial services, healthcare, retail, agriculture, mining, and the public sector.

A Vote of Confidence in South Africa's Economy

President Cyril Ramaphosa welcomed the news in open arms, stating, "Besides pioneering the local technology sector, the establishment of Microsoft in South Africa so long ago was a vote of confidence in our country and our economy. Today's strategic investment announcements by Microsoft are proof again of this confidence so long-held.". They convey a message to the business and investment community that South Africa's economy remains enormous in potential and that it is a safe place to conduct business where their investments are secure.

Brad Smith, Microsoft President and Vice Chair, emphasized the company's long-term commitment to South Africa. "For more than 30 years, Microsoft has been a committed partner to South Africa. This new investment is part of our broader focus in empowering South Africans to build a future where technology drives prosperity and young workers possess the skills they need to succeed."

Bridging the Digital Skills Gap

One of Microsoft's biggest pillars of investment is bridging the digital skills gap in South Africa. 60% of Global South companies identify a lack of digital skills as one of the top obstacles to business by 2030, according to the World Economic Forum. To bridge this gap, Microsoft has made it their mission to upskill one million South Africans by 2026.

Over the next 12 months, Microsoft will expand its digital skills initiative by sponsoring 50,000 individuals to become "Microsoft Certified" in the most sought-after areas such as AI, Data Science, Cybersecurity Analysis, and Cloud Solution Architecture. These certifications will allow the job seekers to demonstrate their capability to potential employers and assist in building a future-ready workforce.

In 2024 alone, Microsoft's Skills for Jobs program trained over 150,000 people in digital and AI skills, certified 95,000, and helped 1,800 gain a job opportunity. The company has also donated and discounted over $100 million of its software to South African non-profits, schools, public libraries, and museums, making technology and educational resources equally accessible.

Empowering Africa to Become an AI Technology Producer.

Microsoft believes that South Africa has the potential to lead Africa's transformation from consumption to production of AI technology. A recent report by the United Nations highlighted the importance of making investments in connectivity and AI governance structures immediately to unlock this potential. By investing in cutting-edge infrastructure and building a qualified pool of talent, South Africa and the entire continent can drive innovation, economic growth, and competitive advantage globally.

Building AI in a Responsible and Sustainable Way.

Microsoft's South African AI platform will be underpinned by the company's AI Access Principles, which assure AI technology is developed and used responsibly to contribute to society. The principles show Microsoft's commitment to the responsible development of AI and as an international AI leader.

The news also aligns with Microsoft's broader sustainability goals. Since 2020, the company has been striving to be carbon negative, water positive, and zero waste by 2030. To date, Microsoft has made significant progress, including enrolling in 34 gigawatts of renewable energy across 24 countries, replenishing more water than it consumes, and conserving over 15,000 acres of land globally.

A Long-Standing Partnership with South Africa.

Microsoft's latest investment reaffirms the company's continued commitment to South Africa and its mission to enable economic growth and resilience. Through the expansion of cloud and AI infrastructure, the development of digital skills, and promoting sustainable development, Microsoft is helping create a more inclusive and innovative future for South Africa and the continent.

As the company celebrates its 50th birthday, this investment is part of Microsoft's continued efforts to make technology work for individuals and organizations, enabling opportunity and prosperity for all.