Microsoft announced plans to invest ZAR 5.4 billion ($296.81 million) by the end of 2027 to expand its cloud and artificial intelligence infrastructure in South Africa, meeting growing demand for Azure services in the region.

The investment builds on Microsoft's previous ZAR 20.4 billion ($1.13 billion) investment over the past three years, which established South Africa's first enterprise-grade data centres in Johannesburg and Cape Town.

"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."

President Cyril Ramaphosa welcomed the investment, 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."

The investment aims to enable organisations across various sectors to access cloud and AI solutions to improve efficiency, optimise service delivery, and drive innovation throughout the South African economy.

As part of the initiative, Microsoft will expand its digital skills programme by paying for 50,000 young people to become "Microsoft Certified" in high-demand skills such as AI, data science, cybersecurity analysis and cloud solution architecture over the next 12 months.

This certification programme builds on Microsoft's commitment to skill one million South Africans by 2026, addressing the digital skills gap identified by the World Economic Forum as a key barrier to business digital transformation in the Global South.

Microsoft believes South Africa has the opportunity to lead Africa in becoming a producer of AI technology rather than just a consumer, with the new AI infrastructure operating under Microsoft's AI Access Principles to ensure responsible and sustainable development.

The investment marks another milestone in Microsoft's 30-year partnership with South Africa, reinforcing the company's commitment to boosting economic growth and resilience in the region.

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