Microsoft to boost AI investment in South Africa
A significant push to expand Microsoft’s presence in South Africa’s growing AI market is occurring, with a new multi-million-dollar investment aimed at strengthening cloud and AI infrastructure in the region.
Microsoft has announced plans to invest an additional 5.4 billion rand (about $296.81 million) by 2027 to enhance its cloud and AI infrastructure in South Africa.
The investment comes in response to the increasing demand for the company’s Azure services in the region, with a particular focus on meeting the needs of businesses integrating AI technology into their operations.
Brad Smith, Vice Chair and President of Microsoft, revealed the initiative during an event in Johannesburg, confirming that the company would also fund technical certification exams for 50,000 individuals.
These exams will cover crucial digital skills, including cloud architecture, AI, and cybersecurity, aiming to address the shortage of skilled professionals in high-demand sectors.
The new investment builds on Microsoft’s previous spending of 20.4 billion rand to establish South Africa’s first enterprise-grade data centres in Johannesburg and Cape Town.
These data centres have become essential hubs for handling the computational demands of AI, as local businesses look to adopt AI-driven solutions.
The company’s broader strategy includes a global commitment to invest around $80 billion in 2025 to further develop data centres and deploy AI and cloud-based applications. South Africa, as a growing tech hub, is expected to play a key role in Microsoft’s plans for the future.
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