Microsoft’s US$297 Million Investment in South Africa’s AI Landscape

Microsoft Corporation is set to invest US$297 million in South Africa to expand its cloud and AI capabilities by 2027. This investment, which adds to previous funding, aims to foster local workforce development and economic growth. President Cyril Ramaphosa emphasized the significance of this investment for potential investors, highlighting South Africa’s secure business environment.

Microsoft Corporation plans to invest an additional 5.4 billion rand (approximately US$297 million) in South Africa by the end of 2027 to enhance its cloud and artificial intelligence capabilities in the nation. This announcement was made by Vice Chairman Brad Smith during an event in Johannesburg, prior to an investment conference aimed at attracting further private investment to accelerate economic growth.

This new investment builds upon the existing 20.4 billion rand that Microsoft has previously directed into South Africa, contributing significantly to the economy. The company will also fund certification exams in digital skills for 50,000 young people over the next year, supporting innovation and economic development.

Microsoft has been a pioneer among tech giants establishing data centers in South Africa, joining the ranks of Amazon and Google. Currently, Microsoft operates data centers in Johannesburg and Cape Town and plans to expand its capacity in Centurion, Gauteng. Additionally, it has made a commitment to develop a US$1 billion geothermal-powered data center in Kenya.

President Cyril Ramaphosa remarked on the significance of Microsoft’s investment, stating, “Microsoft’s investment signals 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.”

This investment marks a crucial step towards revitalizing South Africa’s economic growth, which has struggled to exceed one percent annually for over a decade, and showcases Microsoft’s commitment to fostering local talent and infrastructure in the technology sector.

In conclusion, Microsoft’s planned investment of US$297 million in South Africa is a significant commitment to bolster the nation’s AI and cloud capabilities. This initiative, alongside the funding for digital skills certifications for thousands of young individuals, underscores the company’s dedication to supporting economic growth and workforce development. President Cyril Ramaphosa’s acknowledgment of the investment reflects the potential investors see in South Africa’s economy as a promising and secure environment.

Original Source: financialpost.com