Microsoft Invests Additional $296M In South Africa

Microsoft today announced plans to spend approximately $296M (ZAR 5.4bn) by the end of 2027 to expand its cloud and AI infrastructure in South Africa to meet the growing demand for Azure services in the region. This investment builds on the company’s $1.12B (ZAR 20.4bn) investment over the past three years to establish the nation’s first enterprise-grade datacentres in Johannesburg and Cape Town.

According to Microsoft, the new round of investment will enable a wide range of organisations, from start-ups to large multinationals and government entities to access the cloud and AI solutions to improve operational efficiency and productivity, optimise the delivery of services, and drive innovation across the South African economy.  Providing access to world-class digital infrastructure, coupled with enhancing the capabilities for the South African workforce helps contribute to a future where AI is seamlessly integrated into every aspect of society, driving growth and innovation.

President Ramaphosa 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 stands 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 various industries in South Africa and Africa, including financial services, healthcare, retail, agriculture, mining, and public sector, are already reaping the benefits of Microsoft 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. “This latest investment is part of our broader focus in 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 business digitally transforming by 2030. Addressing this gap is essential for fostering economic growth and innovation. Earlier this year, Microsoft committed to skilling one million South Africans by 2026, equipping companies, government and youth with the knowledge and tools to create AI solutions to address local challenges with homegrown solutions, while contributing to the nation’s AI workforce and ecosystem.

To help job seekers validate their technology proficiency to employers, Microsoft says it will expand its digital skills initiative over the next 12 months by paying for 50,000 people to be “Microsoft Certified” in high-demand skills like AI, Data Science, Cybersecurity Analysis and Cloud Solution Architecture. Microsoft offers a variety of certifications under the Microsoft Certified umbrella, validating skills and expertise in areas such as cloud computing, artificial intelligence, data science, cybersecurity, and software development, to help individuals demonstrate their proficiency and readiness for in-demand tech roles.

By combining skills training with recognised certifications, Microsoft aims to create a future-ready workforce for South Africa and beyond.