Microsoft invests ZAR 5.4 billion to enhance cloud and AI infrastructure in South Africa, aiming to boost digital skills and economic growth. The initiative supports various sectors, provides access to emerging technologies, and seeks to empower local organizations and workforce. Microsoft has a long-standing commitment to South Africa, with plans to skill one million individuals by 2026 and foster local AI solution development.
Microsoft has announced a substantial investment of ZAR 5.4 billion (approximately $280 million) aimed at enhancing its cloud and AI infrastructure in South Africa by 2027. This initiative addresses the increasing demand for Azure services and builds upon a previous investment of ZAR 20.4 billion over the past three years, which established the country’s first enterprise-grade data centers in Johannesburg and Cape Town.
This investment will allow organizations of various sizes, ranging from startups to large government entities, to access cloud and AI technologies. The goal is to improve operational efficiency, optimize service delivery, and drive innovation throughout South Africa’s economy. Enhanced digital infrastructure and workforce capabilities will pave the way for AI to be integrated into all facets of society.
President Cyril Ramaphosa expressed his enthusiasm, stating that Microsoft’s enduring presence in South Africa reflects strong confidence in the nation and its economy. He emphasized that such strategic investments serve as a message to the business community regarding the potential of South Africa as a secure place for investment.
Across multiple sectors, including finance, healthcare, and agriculture, South African customers are already benefiting from Microsoft’s AI and cloud technologies. Microsoft has been committed to South Africa for over 30 years, focusing on leveraging technology to enhance economic prosperity and equip youth with essential skills for their future.
According to the World Economic Forum, a significant skills gap hampers digital transformation in the Global South. In response to this, Microsoft has pledged to equip one million South Africans with digital skills by 2026, enabling them to develop AI solutions to local challenges. Over the next year, Microsoft aims to pay for the certification of 50,000 individuals in high-demand tech skills such as AI and Data Science.
In 2024, Microsoft’s efforts have already led to the training of over 150,000 individuals in digital and AI skills, with 95,000 achieving certification. Furthermore, 1,800 job placements were facilitated through the Skills for Jobs program. Microsoft has also committed more than $100 million to provide software and support to educational institutions and non-profits across South Africa.
To transform South Africa from a consumer to a producer of AI technology, investments in technology infrastructure and digital skills are essential. Microsoft believes that South Africa can take the lead within Africa by helping to create AI technologies rather than solely consuming them. Investments in AI governance and connectivity are necessary to unlock economic growth.
Microsoft’s AI infrastructure in South Africa will operate under the company’s AI Access Principles. These principles guide Microsoft in ensuring responsible AI use that benefits the public good. As Microsoft celebrates its 50th anniversary, it continues to innovate its sustainability goals, including being carbon negative and water positive by 2030.
In summary, Microsoft’s $280 million investment in South Africa’s AI and cloud infrastructure marks a significant step towards enhancing digital skills and economic growth in the region. By addressing the critical skills gap and providing access to cutting-edge technologies, Microsoft aims to empower local organizations and individuals. The initiative not only supports immediate operational improvements but also seeks to position South Africa as a leader in AI production on the African continent.
Original Source: techafricanews.com
