Microsoft has announced a $273 million investment in South Africa to expand its cloud and AI infrastructure, alongside a commitment to skilling one million individuals by 2026. This initiative aims to support startups and SMEs and bolster economic innovation while promoting sustainability and addressing critical skills gaps.
Microsoft is set to invest R5.4 billion (approximately $273 million) by the end of 2027 to enhance its cloud and AI infrastructure in South Africa, in response to increasing demand for Azure services. This investment supplements an existing R20.4 billion allocation made over the past three years, which facilitated the establishment of the nation’s first enterprise-grade data centres in Johannesburg and Cape Town. The initiative aims to empower startups, large multinationals, SMEs, and government bodies to leverage cloud and AI solutions for improved operational effectiveness, enhanced service delivery, and economic innovation.
President Cyril Ramaphosa expressed his enthusiasm for the news, stating, “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.” He further noted that these strategic investments serve as enduring testimony to this confidence.
Brad Smith, Microsoft’s Vice Chair and President, affirmed the company’s commitment to South Africa, highlighting that the investment focuses on providing the necessary skills for young workers to thrive. “This latest investment is part of our broader focus in helping South Africans build a future where technology drives prosperity,” he remarked.
In an effort to close the skills gap, Microsoft has pledged to train one million South Africans by 2026 and is further expanding this initiative by sponsoring certification exams for 50,000 youth in critical digital skills during the next year. These certifications will encompass essential areas such as AI, Data Science, Cybersecurity Analysis, and Cloud Solution Architecture.
From 2024, Microsoft trained more than 150,000 individuals in digital and AI skills, resulting in 95,000 certifications and 1,800 job placements via the Skills for Jobs program. Furthermore, the company has contributed over $100 million in software donations and discounts to local educational institutions, non-profits, public libraries, and museums over the last year. Microsoft envisions that South Africa can play a pivotal role in Africa’s shift from being consumers to producers of AI technology.
As part of its sustainability efforts, the enhanced AI infrastructure will adhere to Microsoft’s AI Access Principles, ensuring equitable access to AI technology for public benefit. The company reiterated its progress in sustainability initiatives, having committed to being carbon negative, water positive, and achieving zero waste by 2030. Noteworthy accomplishments include becoming one of the largest carbon-free energy buyers with a 34GW renewable energy portfolio, initiating 90 water replenishment projects globally, and exceeding its land protection targets by over 40%.
Microsoft remains dedicated to alleviating sustainability challenges while expanding its infrastructure, underscoring its commitment to fostering South Africa’s economic growth and digital transformation.
Microsoft’s recent investment in South Africa reflects a robust commitment to enhancing cloud and AI capabilities. With plans to increase skills training and sustain economic growth, the company’s initiatives will benefit startups, SMEs, and various sectors, contributing to the nation’s technological advancement. Furthermore, Microsoft’s sustainability efforts emphasize its responsibility towards ecological and economic development, solidifying its strategic position within the region.
Original Source: www.zawya.com
